Decision theory is a cornerstone of economic analysis, providing a framework for understanding how individuals and institutions make choices under conditions of uncertainty and risk. At its core, the ...

Suppose we know the utility function of a risk averse decision maker who values a risky prospect X at a price C E. Based on this information alone I develop upper bounds for the tails of the ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Robert Kelly is managing director of XTS Energy LLC, and has more than three ...

Relative position: Theory and evidence Despite common experiences of social comparisons, conventional economic theory assumes that individual utility is independent of the economic status of others.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Robert Kelly is managing director of XTS ...

Green, Jerry R. "'Making Book Against Oneself,' the Independence Axiom, and Non-Linear Utility Theory." Quarterly Journal of Economics 102, no. 4 (November 1987): 785–796.