A revealed-preference implication of weighted utility decisions under uncertainty
AbstractIn a novel formulation of revealed preference analysis, Green and Osband  show that for expected-utility maximizers, acts partition the state-simplex into linear polyhedral blocks. The question naturally arises whether this characterization distinguishes expected utility theory from non-expected utility theories. This paper investigates the weighted utility theory of Chew  and shows that the corresponding partition is systematically different from the expected utility theory: the boundaries of the partition blocks are quadratic rather than linear. This result contains useful empirical contents.
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Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 11 (1998)
Issue (Month): 2 ()
Note: Received: May 15, 1995; revised version: November 22, 1996
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Other versions of this item:
- Park, I.U., 1993. "A Revealed Preference Implication of Weighted Utility Decisions Under Uncertainty," Papers 270, Minnesota - Center for Economic Research.
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- Green, Edward J. & Park, In-Uck, 1996. "Bayes contingent plans," Journal of Economic Behavior & Organization, Elsevier, vol. 31(2), pages 225-236, November.
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