Thoma, Johanna 
ORCID: 0000-0002-1364-4521 and Weisberg, Jonathan
(2017)
Risk writ large.
Philosophical Studies, 174 (9).
pp. 2396-2384.
ISSN 0031-8116
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Abstract
Risk-weighted expected utility (REU) theory is motivated by small-world problems like the Allais paradox, but it is a grand-world theory by nature. And, at the grand-world level, its ability to handle the Allais paradox is dubious. The REU model described in Risk and Rationality turns out to be risk-seeking rather than risk-averse on one natural way of formulating the Allais gambles in the grand-world context. This result illustrates a general problem with the case for REU theory, we argue. There is a tension between the small-world thinking marshaled against standard expected utility theory, and the grand-world thinking inherent to the risk-weighted alternative.
| Item Type: | Article |
|---|---|
| Official URL: | https://link.springer.com/journal/11098 |
| Additional Information: | © 2017 The Authors © CC BY 4.0 |
| Divisions: | Philosophy, Logic and Scientific Method |
| Subjects: | B Philosophy. Psychology. Religion > B Philosophy (General) |
| Date Deposited: | 04 Jul 2017 15:04 |
| Last Modified: | 13 Oct 2025 23:29 |
| URI: | http://eprints.lse.ac.uk/id/eprint/83112 |
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