Reconciliation with the Utility of Chance by Elaborated Outcomes Destroys the Axiomatic Basis of Expected Utility Theory
Graduate studies at Western
Theory and Decision 49 (3):223-234 (2000)
|Abstract||Expected utility theory does not directly deal with the utility of chance. It has been suggested in the literature (Samuelson, 1952, Markowitz, 1959) that this can be remedied by an approach which explicitly models the emotional consequences which give rise to the utility of chance. We refer to this as the elaborated outcomes approach. It is argued that the elaborated outcomes approach destroys the possibility of deriving a representation theorem based on the usual axioms of expected utility theory. This is shown with the help of an example due to Markowitz. It turns out that the space of conceivable lotteries over elaborated outcomes is too narrow to permit the application of the axioms. Moreover it is shown that a representation theorem does not hold for the example|
|Keywords||Utility of chance Elaborated outcomes Axiomatised expected utility theory Representation theorem|
|Categories||categorize this paper)|
|Through your library||Configure|
Similar books and articles
Stephen A. Clark (2000). Revealed Preference and Expected Utility. Theory and Decision 49 (2):159-174.
R. Duncan Luce & A. A. J. Marley (2000). On Elements of Chance. Theory and Decision 49 (2):97-126.
Hans Lottenbach (1994). Expected Utility and Constrained Maximization: Problems of Compatibility. [REVIEW] Erkenntnis 41 (1):37 - 48.
Wesley Cooper (2008). Decision-Value Utilitarianism. Polish Journal of Philosophy 2 (2):39-50.
Marc le Menestrel (2001). A Process Approach to the Utility for Gambling. Theory and Decision 50 (3):249-262.
Robin Giles (1992). A Generalization of the Theory of Subjective Probability and Expected Utility. Synthese 90 (2):301 - 343.
Martin Peterson (2004). From Outcomes to Acts: A Non-Standard Axiomatization of the Expected Utility Principle. Journal of Philosophical Logic 33 (4):361-378.
Per-erik Malmnäs (1994). Axiomatic Justifications of the Utility Principle: A Formal Investigation. Synthese 99 (2):233 - 249.
Ulrich Schmidt (2001). Lottery Dependent Utility: A Reexamination. Theory and Decision 50 (1):35-58.
Juan C. Candeal, Juan R. de Miguel & Esteban Induráin (2002). Expected Utility From Additive Utility on Semigroups. Theory and Decision 53 (1):87-94.
Teddy Seidenfeld, Mark J. Schervish & Joseph B. Kadane (2010). Coherent Choice Functions Under Uncertainty. Synthese 172 (1):157 - 176.
Jack Vromen (2010). On the Surprising Finding That Expected Utility is Literally Computed in the Brain. Journal of Economic Methodology 17 (1):17-36.
Fred Feldman (2006). Actual Utility, the Objection From Impracticality, and the Move to Expected Utility. Philosophical Studies 129 (1):49 - 79.
D. Schoch (1994). An Axiomatic Basis for Distributional Equality in Utilitarianism. Erkenntnis 40 (1):121 - 132.
Lyle Zynda (2000). Representation Theorems and Realism About Degrees of Belief. Philosophy of Science 67 (1):45-69.
Sorry, there are not enough data points to plot this chart.
Added to index2010-09-02
Total downloads1 ( #292,381 of 739,325 )
Recent downloads (6 months)0
How can I increase my downloads?