An additively separable representation in the Savage framework
AbstractThis paper elicits an additively separable representation of preferences in the Savage framework (where the objects of choice are acts: measurable functions from an infinite set of states to a potentially finite set of consequences). A preference relation over acts is represented by the integral over the subset of the product of the state space and the consequence space which corresponds to the act, where this integral is calculated with respect to a “state-dependent utility” measure on this space. The result applies at the stage prior to the separation of probabilities and utilities, and requires neither Savage’s P3 (monotonicity) nor his P4 (likelihood ordering). It may thus prove useful for the development of state-dependent utility representation theorems in the Savage framework.
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 882.
Length: 14 pages
Date of creation: 29 Oct 2007
Date of revision:
Expected utility; additive representation; state-dependent utility; monotonicity;
Other versions of this item:
- Hill, Brian, 2010. "An additively separable representation in the Savage framework," Journal of Economic Theory, Elsevier, vol. 145(5), pages 2044-2054, September.
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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