What Do We Know About Decision Making Under Risk and Where Do We Go from Here ?

@inproceedings{Buschena2003WhatDW,
  title={What Do We Know About Decision Making Under Risk and Where Do We Go from Here ?},
  author={David E. Buschena and David Zilberman},
  year={2003}
}
This article reviews two major approaches used in the past for risk analysisthe expected utility approach and the use of safety rules-and endeavors to reconcile their applicability and use in light of the recent nonexpected utility risk literature and work using the mean-Gini coefficient for risk analysis. This leads to the identification of several "reduced form" hypotheses that hold under a variety of theoretical structures and to a discussion of some empirical evidence regarding these… CONTINUE READING