Generalization 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 accomodate systematic and predictable violations of previous theories while not giving up too much of the mathematical elegance of their expected utility representation. The material in the paper is adapted from the author's book Nonlinear Preference and Utility Theory.