Decision-making under uncertainty: theory, experiments, and applications


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
– Semi-orders
– 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)