The course will emphasize the conceptual foundations of the theory, as well as the mathematical ones. Results will be proven in class when practical, at least in simple versions.
– Decision under certainty: utility maximization
– Choice Functions
– Choice under risk: von Neumann and Morgenstern's Expected Utility
– Choice under uncertainty: Subjective Expected Utility (de Finetti, Savage, and Anscombe-Aumann Theorems)
– Experimental violations of expected utility
– Generalizations: Ambiguity models (Choquet and Maxmin Expected Utility)