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Global subjective expected utility representations

Author

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  • Marcus Pivato

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

In recent work, we developed a new model of decision-making under uncertainty, which can simultaneously accommodate multiple sources of uncertainty and multiple outcome menus, related by analogies and/or changes in awareness. This framework can also accommodate state spaces and outcome spaces with additional structure (e.g. a topology), as well as decision problems where states and outcomes are not explicitly specified. The present paper axiomatically characterizes a subjective expected utility representation that is "global" in two senses. First: it posits probabilistic beliefs for all uncertainty sources and utility functions over all outcome menus, which simultaneously rationalize the agent's preferences across all possible decision problems, and which are consistent with the aforementioned analogies, symmetries, and awareness levels. Second: it applies in many mathematical environments (i.e. categories), making it unnecessary to develop a separate theory for each one. We illustrate this by applying our representation in several categories (sets, measurable spaces, topological spaces, bounded distributive lattices, Riesz spaces, and Banach algebras), and showing that it delivers utility functions suitable to each one.

Suggested Citation

  • Marcus Pivato, 2025. "Global subjective expected utility representations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-05415430, HAL.
  • Handle: RePEc:hal:cesptp:hal-05415430
    Note: View the original document on HAL open archive server: https://hal.science/hal-05415430v1
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    References listed on IDEAS

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    1. Skiadas, Costis, 1997. "Subjective Probability under Additive Aggregation of Conditional Preferences," Journal of Economic Theory, Elsevier, vol. 76(2), pages 242-271, October.
    2. Blume, Lawrence & Easley, David & Halpern, Joseph Y., 2021. "Constructive decision theory," Journal of Economic Theory, Elsevier, vol. 196(C).
    3. Costis Skiadas, 1997. "Conditioning and Aggregation of Preferences," Econometrica, Econometric Society, vol. 65(2), pages 347-368, March.
    4. David S. Ahn, 2008. "Ambiguity Without a State Space," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(1), pages 3-28.
    5. Karni, Edi, 2006. "Subjective expected utility theory without states of the world," Journal of Mathematical Economics, Elsevier, vol. 42(3), pages 325-342, June.
    6. Marcus Pivato, 2025. "Subjective expected utility on orthomodular lattices," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-05398789, HAL.
    7. Karni, Edi & Vierø, Marie-Louise, 2017. "Awareness of unawareness: A theory of decision making in the face of ignorance," Journal of Economic Theory, Elsevier, vol. 168(C), pages 301-328.
    8. Marcus Pivato, 2020. "Subjective expected utility with a spectral state space," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 69(2), pages 249-313, March.
    9. Pivato, Marcus & Vergopoulos, Vassili, 2020. "Subjective expected utility with imperfect perception," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 104-122.
    10. Marcus Pivato, 2025. "Subjective expected utility on orthomodular lattices," Post-Print hal-05398789, HAL.
    11. Karni, Edi, 2017. "States Of Nature And The Nature Of States," Economics and Philosophy, Cambridge University Press, vol. 33(1), pages 73-90, March.
    12. Edi Karni & Marie-Louise Vierø, 2015. "Probabilistic sophistication and reverse Bayesianism," Journal of Risk and Uncertainty, Springer, vol. 50(3), pages 189-208, June.
    13. Steven Roman, 2008. "Lattices and Ordered Sets," Springer Books, Springer, number 978-0-387-78901-9, March.
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    Cited by:

    1. Marcus Pivato, 2025. "Polyvalent decision theory," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-05415427, HAL.

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