Certainty independence and the separation of utility and beliefs

Article Abstract:

The study conducted presents that for a general class of preferences, a separation of a key component of tastes, the utility function, from the other components of the representation is possible only if the decision maker's preference satisfy a mild but not completely innocuous conditions, called 'certainty independence'. The study outlines the axiomatic characterization of the preferences that obtain such separation, which are a subset of the biseperable preferences.

Economic conditions

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Differentiating ambiguity and ambiguity attitude

Article Abstract:

The ways in which ambiguity and a decision maker (DM)'s response to it can be modeled formally in the context of a general decision model are discussed. A relation derived from the DM's preference called 'unambiguous preference' is introduced and it is shown that it can be represented by a set of probabilities.

Decision-making, Decision making

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Expected utility theory without the completeness axiom

Article Abstract:

The problem of obtaining an expected utility representation for a potentially incomplete preference relation over lotteries by means of a set of von Neumann-Morgenstern utility functions is examined. A multiutility representation is seen when the standard axioms of expected utility theory is satisfied.

Analysis

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