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12 Notes Be by Suhani Sethi is a document available to read on EtoBox.
Chapter 12 of the Behavioral Economics exam notes introduces Non-Expected Utility, focusing on Prospect Theory and Maxmin Expected Utility as alternatives to standard expected utility. It explains how these models address anomalies like the Allais and Ellsberg paradoxes through mechanisms such as reference dependence, loss aversion, diminishing sensitivity, and probability weighting. The chapter also discusses the implications of these theories on decision-making under uncertainty and evaluates their empiri
- Author
- Suhani Sethi
- Language
- EN