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Expected utility theory without the completeness axiom

Author

Listed:
  • Juan Dubra
  • Fabio Maccheroni
  • Efe Oki
Abstract
We study axiomatically the problem of obtaining an expected utility representation for a potentially incomplete preference relation over lotteries by means of a set of von Neumann-Morgenstern utility functions. It is shown that, when the prize space is a compact metric space, a preference relation admits such a Multi-utility representation provided that it satisfies the standard axioms of expected utility theory. Moreover, the representing set of utilities in unique in a well-defined sense.

Suggested Citation

  • Juan Dubra & Fabio Maccheroni & Efe Oki, 2001. "Expected utility theory without the completeness axiom," ICER Working Papers - Applied Mathematics Series 11-2001, ICER - International Centre for Economic Research.
    • Handle: RePEc:icr:wpmath:11-2001
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    File URL: http://www.bemservizi.unito.it/repec/icr/wp2001/Maccheroni11-01.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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