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Additive utility with intransitive indifference and without independence: A homogeneous case


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In the homogeneous case of one type of goods or objects, we prove the existence of an additive utility function without assuming transitivity of indifference and independence. The representation reveals a positive factor smaller than 1 that infuences rational choice beyond the utility function and explains departures from these standard axioms of utility theory (factor equals to 1).

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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 628.

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Date of creation: Jun 2002
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Handle: RePEc:upf:upfgen:628

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Keywords: Rationality; utility; maximization;

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  1. Marc Le Menestrel, 2003. "A one-shot Prisoners’ Dilemma with procedural utility," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 819, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Marc Le Menestrel & Luk Van Wassenhove, 2001. "The Domain and Interpretation of Utility Functions: An Exploration," Theory and Decision, Springer, Springer, vol. 51(2), pages 329-349, December.
  3. Sen, A., 1996. "Maximisation and the Act of Choice," Papers, Banca Italia - Servizio di Studi 270, Banca Italia - Servizio di Studi.
  4. Marc Le Menestrel, 2001. "A Process Approach to the Utility for Gambling," Theory and Decision, Springer, Springer, vol. 50(3), pages 249-262, May.
  5. Simon, Herbert A, 1978. "Rationality as Process and as Product of Thought," American Economic Review, American Economic Association, American Economic Association, vol. 68(2), pages 1-16, May.
  6. Peter Fishburn & Peter Wakker, 1995. "The Invention of the Independence Condition for Preferences," Management Science, INFORMS, INFORMS, vol. 41(7), pages 1130-1144, July.
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