Generalizations of expected utility theories: A survey of recent proposals

This paper reviews recently developed theories that generalize the von Neumann Morgenstern theory of preference under risk and Savage’s theory of preference under uncertainty. The new theories are designed to accommodate systematic and predictable violations of previous theories while not giving up too much of the mathematical elegance of their expected utility representations. The material in the paper is adapted from the author’s book Nonlinear Preference and Utility Theory.