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A Derivation of Expected Utility Maximization in the Context of a Game

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Author Info
Gilboa, I.
Schmeidler, D.

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Abstract

A decision maker faces a decision problem, or a game against nature. For each probability distribution over the state of the world (nature`s strategies), she has a weak order over her acts (pure strategies). We formulate conditions on these weak orders guaranteeing that they can be jointly represented by expected utility maximization with respect to an almost-unique state-dependent utility, that is, a matrix assigning real numbers to act-state pairs.

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Publisher Info
Paper provided by Tel Aviv in its series Papers with number 2001-18.

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Length: 23 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:teavfo:2001-18

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Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
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Related research
Keywords: GAMES ; DISTRIBUTION ; DECISION MAKING;

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Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
D8 - Microeconomics - - Information, Knowledge, and Uncertainty

Cited by:
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  1. Chambers, Christopher P. & Hayashi, Takashi, 2008. "Choice and individual welfare," Working Papers 1286, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
Statistics
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This page was last updated on 2009-11-20.

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