Average Utility Maximization: A Preference Foundation

• 成果类型: Article
• 署名作者: Kothiyal, Amit; Spinu, Vitalie; Wakker, Peter P.
• 署名单位: Max Planck Society; University of California System; University of California Los Angeles; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.2013.1230
• 发表日期: 2014
• 页码: 207-218
• 关键词: expected utility; subjective-probability; axiomatic approach; decision-making; power set; REPRESENTATION; uncertainty; definition; ambiguity; quantity

摘要

This paper provides necessary and sufficient preference conditions for average utility maximization over sequences of variable length. We obtain full generality by using a new algebraic technique that exploits the richness structure naturally provided by the variable length of the sequences. Thus we generalize many preceding results in the literature. For example, continuity in outcomes, a condition needed in other approaches, now is an option rather than a requirement. Applications to expected utility, decisions under ambiguity, welfare evaluations for variable population size, discounted utility, and quasilinear means in functional analysis are presented.