Question: Why have behavioural economists and economic psychologists thought it necessary to build new models of risk to replace expected utility theory? What are the problems

Why have behavioural economists and economic psychologists thought it necessary to build new models of risk to replace expected utility theory? What are the problems with expected utility theory that behavioural economists and economic psychologists are aiming to resolve?

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Behavioural economists and economic psychologists have found it necessary to develop new models of risk to replace expected utility theory due to several shortcomings and problems with the traditional ... View full answer

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