A Two-Period Model of Choice under Life and Death Uncertainty

Decisionmaking under uncertainty (DMUU) has been analyzed in a variety of ways in the literature. The uncertainty considered here Involves matters of life and death. It is postulated that individuals can affect the probability and nature of certain outcomes, including their own survival probabilities, by taking appropriate actions. The interaction of individualistic decisionmaking in the face of uncertainty about the state of nature is analyzed using a two-period model. The results are generalized to include investment opportunities and the model is extended to group decisomaking and Interrelated preferences.