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The Empirical Content of Expected Utility

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  • Mononen, Lasse

    (Center for Mathematical Economics, Bielefeld University)

Abstract

We characterize the empirical content of expected utility. We show that the empirical content of the expected utility theory is contained in completeness, transitivity, and strong independence axioms. However, under commonly used weaker forms of independence axiom, the continuity adds empirical content in the expected utility theory. This formalizes and makes exact the ubiquitous claim that the continuity axiom is a technical axiom without empirical content in the expected utility theory.

Suggested Citation

  • Mononen, Lasse, 2025. "The Empirical Content of Expected Utility," Center for Mathematical Economics Working Papers 737, Center for Mathematical Economics, Bielefeld University.
    • Handle: RePEc:bie:wpaper:737
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    File URL: https://pub.uni-bielefeld.de/download/3006172/3006173
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    References listed on IDEAS

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    1. Christopher P. Chambers & Federico Echenique & Eran Shmaya, 2014. "The Axiomatic Structure of Empirical Content," American Economic Review, American Economic Association, vol. 104(8), pages 2303-2319, August.
    2. Gilboa, Itzhak & Schmeidler, David, 1989. "Maxmin expected utility with non-unique prior," Journal of Mathematical Economics, Elsevier, vol. 18(2), pages 141-153, April.
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