An expected utility theory for state-dependent preferences

Theory and Decision 81 (4):467-478 (2016)

Abstract
This note is a generalization and improved interpretation of the main result of Karni and Schmeidler. A decision-maker is supposed to possess a preference relation on acts and another preference relation on state-prize lotteries, both of which are assumed to satisfy the von Neumann–Morgenstern axioms. In addition, the two preference relations restricted to a state of nature are assumed to agree. We show that these axioms are necessary and sufficient for the existence of subjective expected utility over acts with state-dependent utility functions and a subjective probability measure. This subjective probability measure is unique when conditioned on the set of states of nature in which not all the prizes are equally desirable.
Keywords No keywords specified (fix it)
Categories No categories specified
(categorize this paper)
ISBN(s)
DOI 10.1007/s11238-016-9545-0
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

Our Archive


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 48,824
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

The Foundations of Statistics.Leonard J. Savage - 1956 - Philosophy of Science 23 (2):166-166.
Do Bets Reveal Beliefs?Jean Baccelli - 2017 - Synthese 194 (9):3393-3419.
De Finetti Was Right: Probability Does Not Exist.Robert F. Nau - 2001 - Theory and Decision 51 (2/4):89-124.

Add more references

Citations of this work BETA

The Impartial Observer Theorem of Social Ethics.Philippe Mongin - 2001 - Economics and Philosophy 17 (2):147-179.
An Axiomatic Approach to Axiological Uncertainty.Stefan Riedener - 2020 - Philosophical Studies 177 (2):483-504.
The Problem of State-Dependent Utility: A Reappraisal.Jean Baccelli - forthcoming - British Journal for the Philosophy of Science:axz024.

Add more citations

Similar books and articles

Eliciting Beliefs.Robert Chambers & Tigran Melkonyan - 2008 - Theory and Decision 65 (4):271-284.
The Paradox of the Bayesian Experts.Philippe Mongin - 2001 - In David Corfield & Jon Williamson (eds.), Foundations of Bayesianism. Kluwer Academic Publishers. pp. 309-338.
Do Bets Reveal Beliefs?Jean Baccelli - 2017 - Synthese 194 (9):3393-3419.
Risk and Tradeoffs.Lara Buchak - 2014 - Erkenntnis 79 (S6):1091-1117.
Lottery Dependent Utility: A Reexamination.Ulrich Schmidt - 2001 - Theory and Decision 50 (1):35-58.
Interval Scalability of Rank-Dependent Utility.Mikhail V. Sokolov - 2011 - Theory and Decision 70 (3):255-282.
Living Without State-Independence of Utilities.Brian Hill - 2009 - Theory and Decision 67 (4):405-432.
Revisiting Risk and Rationality: A Reply to Pettigrew and Briggs.Lara Buchak - 2015 - Canadian Journal of Philosophy 45 (5):841-862.

Analytics

Added to PP index
2018-03-29

Total views
6 ( #1,013,943 of 2,309,334 )

Recent downloads (6 months)
1 ( #761,345 of 2,309,334 )

How can I increase my downloads?

Downloads

My notes

Sign in to use this feature