IDEAS home Printed from https://ideas.repec.org/p/isu/genres/11225.html
   My bibliography  Save this paper

A Conditional Expected Utility Model for Myopic Decision Makers

Author

Listed:
  • Tesfatsion, Leigh S.

Abstract

This article formulates and axiomatizes a conditional expected utility model that allows a decision maker to specify his actions in the form of partial rather than complete contingency plans and to simultaneously choose goals and actions in end-mean pairs. Both utility and probability are conditioned on selected goals and actions (g,a), and both are defined over the same set of possible (g,a)-conditioned events. For adaptive sequential decision problems, this symmetrical treatment of utility and probability permits agents to learn via "criterion filtering." That is, the expected utility criterion function can be directly updated in each decision period via transitional utility assessments in a manner analogous to Bayes' rule for updating probability distributions via transitional probability assessments. Annotated pointers to related work can be accessed here: http://www2.econ.iastate.edu/tesfatsi/cfhome.htm

Suggested Citation

  • Tesfatsion, Leigh S., 1980. "A Conditional Expected Utility Model for Myopic Decision Makers," Staff General Research Papers Archive 11225, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:11225
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    behavioral economics; Bounded rationality; goals; Bayes' rule; criterion filtering;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genres:11225. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Curtis Balmer). General contact details of provider: http://edirc.repec.org/data/deiasus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.