Modeling the Non-Expected Choice: A Weighted Utility Logit

This work derives and simulates two choice models applying the weighted utility theory, a generalization of the expected utility theory. It shows one set of assumptions, which justify the practice of including the mean and the variance of a risky alternative into a linear utility function of the choice model. A Monte Carlo simulation provides empirical evidence on the robustness of the models.

• Type: Conference
• Year: 2005
• Where: SEMWEB
• Authors: Pia Koskenoja
• Keywords: Choice Model, SEMWEB 2005, Utility Theory, Weighted Utility Theory