The Value of Pre-Decision Side Bets for Utility Maximizers

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.

• 저널Management Science · 34(6) · 797–800
• 토픽Big Data and Business Intelligence · Management Information Systems
• DOI10.1287/mnsc.34.6.797
• 저자David E. Bell