The Sure-Thing Principle and the Comonotonic Sure-Thing Principle: An Axiomatic Analysis
| Authors |
|
| Publication date |
1996
|
| Journal |
Journal of mathematical economics
|
| Volume | Issue number |
25
|
| Pages (from-to) |
213-227
|
| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
|
| Abstract |
This paper compares classical expected utility with the more general rank-dependent utility models. It shows that the difference between the sure-thing principle for preferences of expected utility and its comonotonic generalization in rank-dependent utility provides the exact demarcation between expected utility and rank-dependent models.
|
| Document type |
Article
|
| Published at |
https://doi.org/10.1016/0304-4068(95)00721-0
|
|
Permalink to this page
|
Back