Revealed preference theory on the choice of lotteries
Article Abstract:
A revealed preference characterization of choice behavior consistent with expected utility maximization is presented and can be tested with any choice correspondence and any compact set of prizes. Expected utility maximization requires that there is no way to compound lotteries such that the probability distribution over the final prizes from the chosen lotteries of each observation is equivalent to that generated by the rejected lotteries of each observation. The characterization demonstrates the consistency of a decision-marker's choice behavior.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 1996
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Axioms for preferences revealing subjective uncertainty and uncertainty aversion
Article Abstract:
The subjectively perceived uncertainty and individual degree of uncertainty aversion of a decision maker is analyzed.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2004
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Subjective expected utility theory without states of the world
Article Abstract:
A theory without any proof for decision-making under uncertainty that rolls out with the state-space is developed.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2006
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