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A single-stage approach to Anscombe and Aumann's expected utility Author info | Abstract | Publisher info | Download info | Related research | Statistics Sarin, R.
Wakker, P. (Tilburg University, Center for Economic Research)
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Anscombe and Aumann showed that if one accepts the existence of a physical randomizing device such as a roulette wheel then Savage's derivation of subjective expected utility can be considerably simplified. They, however, invoked compound gambles to define their axioms. We demonstrate that the subjective expected utility derivation can be further simplified and need not invoke compound gambles. Our simplification is obtained by closely following the steps by which probabilities and utilities are revealed.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
45.
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Date of creation: 1996Date of revision:
Handle: RePEc:dgr:kubcen:199645Contact details of provider: Web page: http://center.uvt.nl
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Find related papers by JEL classification: D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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