Scientific article 1992
An Introduction to Decision Making When Uncertainty Is Not Just Risk
Authors:
- Ebbe Hendon
- Hans Jørgen Jacobsen
- Birgitte Sloth
- Torben Tranæs
An uncertain and not just risky situation may be modeled using so-called belief functions assigning lower probabilities to events, that is, to sets of possible outcomes. In this paper we give an introduction to this concept and a first contribution to modeling decision making when there is uncertainty. We extend the von Neumann- Morgenstern expected utility theory to belief functions.
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Nationaløkonomisk tidsskrift