The sure-thing principle and the comonotonic sure-thing principle: an axiomatic analysis

Article Abstract:

The difference between expected and rank-dependent utility is evaluated using the relationship between the sure-thing and comonotonic sure-thing principle. The positive correlation between the two sets is proven further by using the general structural axioms of rank-dependent utility. Although the intuitive and continuity axioms of samples are separately applicable to unlimited extension of the model, both axioms can not be jointly satisfied by extending the samples in the infinite model.

Axiomatic set theory, Utility theory, Utility functions, Monotonic functions

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Cycle-preserving extension of demand functions to new commodities

Article Abstract:

A general method for extending a demand function to more commodities while retaining cycles is proposed. The method preserves the minimal length of a preference cycle shown by the demand function. It uses demand functions on nonlinear budget sets studied by Peters and Wakker (1991). The model shows that for any number of commodities exceeding two, no preference cycles up to a certain length k exist.

Demand functions (Economics), Demand functions

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The topographical approach

Article Abstract:

A topographical approach is used in the study of the additive representation theory in Cartesian products. Some misconceptions regarding the theory is clarified. Results show that in rank-ordered subsets of Cartesian products, the validity of the additive theory remains intact. The rank dependent approach can be used in the analysis of decision-making theories under risk and uncertainty.

Methods, Decision-making, Decision making, Risk assessment, Additive functions

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