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
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