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A Simple Axiomatization of Neo-Additive Choquet Expected Utility Theory on a Finite State Space

Author

Listed:
  • Takao Asano

    (Okayama University)

  • Hiroyuki Kojima

    (Teikyo University)

  • Kaname Miyagishima

    (Aoyama Gakuin University)

Abstract

By assuming that a state space is finite, we provide an easy-to-understand axiomatization of neo-additive Choquet expected utility theory (CEU) following Chateauneuf et al. (2007). Our axiomatization based on Moebius inversions sheds new light on their usefulness for our understanding of the behaviors of decision makers and enables us to provide new interpretations for neo-additive CEU from uncertainty aversion (uncertainty lovingness) and certainty equivalent, respectively. Furthermore, our approach enables us to understand the relationship between existing contributions by Chateauneuf et al. (2007), Kajii et al. (2009), and Asano and Kojima (2022) in a clearer and more unified way.

Suggested Citation

  • Takao Asano & Hiroyuki Kojima & Kaname Miyagishima, 2022. "A Simple Axiomatization of Neo-Additive Choquet Expected Utility Theory on a Finite State Space," KIER Working Papers 1080, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:1080
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    References listed on IDEAS

    as
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    6. Chateauneuf, Alain & Eichberger, Jurgen & Grant, Simon, 2007. "Choice under uncertainty with the best and worst in mind: Neo-additive capacities," Journal of Economic Theory, Elsevier, vol. 137(1), pages 538-567, November.
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    Keywords

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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