Utility of Gains and Losses: Measurement-Theoretical and Experimental Approaches
Categories: Science & Math
Mathematical psychologist R. Duncan Luce provides a penetrating analysis of the axioms underlying theories of human choice. He reviews the experimental evidence on how people evaluate gains, losses and risky gambles, and develops measurement-theoretical models that account for observed behavior better than classical expected utility. The book shows how formal theory and experiments can work together in the study of decision making.
Recommended by 1 person
- Shane Parrish: “…provides a penetrating analysis of the axioms underlying human choice theory and a thorough review of the evidence. Most importantly, he illustrates the process of decomposing theories into testable properties that become the building blocks for better theories.”