The Value of Pre-Decision Side Bets for Utility Maximizers
- 1 June 1988
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Management Science
- Vol. 34 (6) , 797-800
- https://doi.org/10.1287/mnsc.34.6.797
Abstract
If an alternative is attractive only at certain wealth levels of a decision maker, typically above some critical level, then there will be occasions when it is better to enter into an independent side bet prior to making a decision, than to accept or reject the alternative outright.Keywords
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