ISSN:
1573-0476
Keywords:
rank-dependent utility
;
uncertain payoffs
;
gambles
;
preference
;
dual-bilinear utility
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract Gambles are recursively generated from pure payoffs, events, and other gambles, and a preference order over them is assumed. Weighted average utility representations are studied that are strictly increasing in each payoff and for which the weights depend both on the events underlying the gamble and the preference ranking over the several component payoffs. Basically two results are derived: a characterization of monotonicity in terms of the weights, and an axiomatization of the representation. The latter rests on two important conditions: a decomposition of gambles into binary ones and a necessary commutativity condition on events in a particular class of binary gambles. A number of unsolved problems are cited.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF00056140
