Expected utility (EU) models are the cornerstone of the economic approach to modeling decision making under uncertainty. These models perform poorly, however, in describing decision making under a number of real-world conditions. Non-expected utility models have been developed to address the shortcomings of the conventional approach. Modeling and empirical use of non-EU models are currently constrained because it is believed these models violate desirable behavioral properties. This research will analyze the validity of those beliefs. Non-EU models will be applied to dynamic choice situations. The investigators will explore families of non-EU models that maintain the property of dynamic consistency in these situations. The results are expected to broaden the application of non-EU models to a wide range of modeling environments.
