compareEU: Compare the expected utility (EU) of choice gambles.

In gary-au/pt: Computational models for prospect theory and other theories of risky decision making

Description

Compare the expected utility (EU) of choice gambles.

Usage

compareEU(object, utility, digits)

## S4 method for signature 'Choices'
compareEU(object, utility, digits)

Arguments

object	Choices, an instance of a Choices class.
utility	Utility, an instance of a Utility class.
digits	numeric, the number of digits to display in the output.

References

von Neumann, J., & Morgenstern, O. (1947). Theory of games and economic behavior (2nd ed.). Princeton, NJ: Princeton University Press.

Bernoulli, D. (1954). Exposition of a new theory on the measurement of risk. Econometrica, 22(1), 23-36.

Bernoulli, D. (1738). Specimen theoriae novae de mensura sortis. Commentarii Academiae Scientiarum Imperialis Petropolitanae, 5, 175-192.

Examples

# This example creates the two Allais common consequence paradox choices,
# and computes the EU for each gamble in the choices.

choice_ids <- c(1, 1, 1, 1, 2, 2, 2, 2)

gamble_ids <- c(1, 1, 1, 2, 1, 1, 2, 2)

outcome_ids <- c(1, 2, 3, 1, 1, 2, 1, 2)

objective_consequences <- c(2500, 2400, 0, 2400,
	2500, 0, 2400, 0)

probability_strings <- c("0.33", "0.66", "0.01", "1.0",
	"0.33", "0.67", "0.34", "0.66")

my_choices <- Choices(choice_ids=choice_ids,
	gamble_ids=gamble_ids,
	outcome_ids=outcome_ids,
	objective_consequences=objective_consequences,
	probability_strings=probability_strings)

my_choices

my_utility <- Utility(fun="power",
par=c(alpha=1.0, beta=1.0, lambda=1.0))

compareEU(my_choices, utility=my_utility, digits=4)

gary-au/pt documentation built on May 16, 2019, 5:41 p.m.