Lotteries' evaluation: an Optimal Transport approach
I apply optimal transport theory to choice under risk. In particular, I propose an alternative derivation of the certainty equivalent of monetary lotteries based on Kantorovich formulation of the optimal transport problem. This approach can potentially account for several empirical violations of EU, such as the fourfold pattern, loss aversion and the failure of the independence axiom.
Date: 23 February 2024, 11:45 (Friday, 6th week, Hilary 2024)
Venue: Manor Road Building, Manor Road OX1 3UQ
Venue Details: Seminar Room E or
Speaker: Stefania Merone (University of Oxford)
Organising department: Department of Economics
Part of: Student Research Workshop in Micro Theory
Booking required?: Not required
Audience: Members of the University only
Editor: Edward Clark