Abstract
An axiomatic model is presented in which a utility function over consequences, unique up to location and unit, is derived. The assumptions apply to a binary relation over purely subjective acts, namely, no exogenous probabilities are assumed. The main assumption used is a weak trade-off consistency condition. The model generalizes the biseparable model of Ghirardato and Marinacci [Ghirardato P, Marinacci M (2001) Risk, ambiguity, and the separation of utility and beliefs.
Original language | English |
---|---|
Pages (from-to) | 290-300 |
Number of pages | 11 |
Journal | Mathematics of Operations Research |
Volume | 39 |
Issue number | 2 |
Early online date | 6 Sep 2013 |
DOIs | |
State | Published - May 2014 |
Keywords
- Cardinal utility
- Choice under uncertainty
- Decision theory
- Trade-off consistency