Ordinal utility models of decision making under uncertainty

  title={Ordinal utility models of decision making under uncertainty},
  author={Charles F. Manski},
  journal={Theory and Decision},
  • C. Manski
  • Published 1 July 1988
  • Economics
  • Theory and Decision
This paper studies two models of rational behavior under uncertainty whose predictions are invariant under ordinal transformations of utility. The ‘quantile utility’ model assumes that the agent maximizes some quantile of the distribution of utility. The ‘utility mass’ model assumes maximization of the probability of obtaining an outcome whose utility is higher than some fixed critical value. Both models satisfy weak stochastic dominance. Lexicographic refinements satisfy strong dominance.The… 

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