Nonlinear Preference and Utility Theory

Excerpt from This book attempts to make sense of recent and not so recent developments in preference theory for risky and uncertain decisions. It is arrange in two main Chapters 1 through 6 focus on decision under risk, Chapters 7 through 9 on decision under uncertainty. Each main part answers three 1. What is expected utility theory? 2. What is wrong with it from a rational preference perspective? 3. What has been proposed to correct the problems?