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Random Expected Utility Theory with a Continuum of Prizes

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  • Wei Ma

Abstract

This note generalizes Gul and Pesendorfer’s random expected utility theory, a stochastic reformulation of von Neumann-Morgenstern expected utility theory for lotteries over a finite set of prizes, to the circumstances with a continuum of prizes. Let [0,M] denote this continuum of prizes; assume that each utility function is continuous, let C0[0,M] be the set of all utility […]

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  • Wei Ma, 2018. "Random Expected Utility Theory with a Continuum of Prizes," Working Papers 760, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:760
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Utility; Social Programmes;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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