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Preferences for Shifts in Probabilities and Expected Utility Theory

Author

Listed:
  • David Cantalá

    (El Colegio de México, A. C.)

Abstract
We translate preferences over lotteries into preferences over “shifts in probabilities†. We define the independence axiom for such preferences. Next we construct and expected utility function to represent the preferences and present the corresponding additive geometry.

Suggested Citation

  • David Cantalá, 2007. "Preferences for Shifts in Probabilities and Expected Utility Theory," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 22(1), pages 99-109.
    • Handle: RePEc:emx:esteco:v:22:y:2007:i:1:p:99-109
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/147/449
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    References listed on IDEAS

    as
    1. Machina, Mark J, 1987. "Choice under Uncertainty: Problems Solved and Unsolved," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 121-154, Summer.
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    Cited by:

    1. Karla Flores Zarur & William José Olvera López & Leobardo Plata Pérez, 2023. "A note about the different characterizations of the expected utility theorem/Una nota sobre las diferentes caracterizaciones del teorema de la utilidad esperada," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 38(1), pages 167-181.

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    More about this item

    Keywords

    expected utility theory; cardinality;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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