An User-Friendly Approach to Assess Preferences Under Risk: The Target-Oriented Model
Posted: 25 Feb 2014
Date Written: February 18, 2014
According to the target-oriented decision model (see Castagnoli and Li Calzi,1996 and Bordley and Li Calzi, 2000) the individual agent cardinal utility can be simply elicited by assessing the (random) goal the agent wishes to meet. The use of the target-oriented language to design risk preferences may improve the questionnaire usability.
Keywords: Risk assessment, goal-oriented decision making, utility function assessment
JEL Classification: G02, G11
Suggested Citation: Suggested Citation