How a Certain Internal Consistency Entails the Expected Utility Dogma.
If I am "coherent," in the sense that I can always replace any subset of outcomes by their certainty equivalent (occuring with the sum of their probabilities), then I must act according to the dogma of maximizing an Exp {U}, ruling out Machina (1982), Allais (1952), and Ysidro (1950) functionals. Copyright 1988 by Kluwer Academic Publishers
Year of publication: |
1988
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Authors: | Samuelson, Paul A |
Published in: |
Journal of Risk and Uncertainty. - Springer. - Vol. 1.1988, 4, p. 389-93
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Publisher: |
Springer |
Saved in:
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