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Record: oai:ARNO:125665

AuthorP.P. Wakker
TitleContinuous expected utility for arbitrary state spaces
JournalMethods of operations research
FacultyFaculty of Economics and Business
Institute/dept.FEB: Amsterdam School of Economics Research Institute (ASE-RI)
KeywordsDecision-making; Mathematical methods; Utility
AbstractSubjective expected utility maximization with continuous utility is characterized, extending the result of Wakker (1984, Journal of Mathematical Psychology) to infinite state spaces. In Savage (1954, The Foundations of Statistics) the main restriction, P6, requires structure for the state space, e.g. this must be infinite. The main restriction of this paper, requiring continuity of the utility function, may be more natural in economic contexts, since it is based on topological structure of the consequence space, structure that usually is present in economic contexts anyhow. Replacing the state interpretation by a time interpretation yields a characterization for dynamic contexts.
Document typeArticle
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