Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=50725#.VEmy8VfHRK0 Author(s) Benito V. Frosini Affiliation(s) Department of Statistical Sciences, Catholic University of Milan, Milano, Italy . ABSTRACT The author resumes a proposal by Frosini of a criterion of choice between probability prospects, which realizes a suggestion by Allais of taking account, beside the expected utility of the dispersion or variability of utilities. The suggested criterion is unidimensional, and is increasing with expected utility, and decreasing, for most people, who are risk averse, with the absolute deviation of utilities; a parameter multiplying this dispersion measure allows for risk-averse or ri...
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