Subjective probabilities for state-dependent continuous utility

Authors
  • P.P. Wakker
Publication date 1987
Journal Mathematical Social Sciences
Volume | Issue number 14
Pages (from-to) 289-298
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract For the expected utility model with state dependent utilities, Karni, Schmeidler & Vind (1983, Econometrica) show how to recover uniquely the involved subjective probabilities if the preferences, contingent on a hypothetical probability distribution over the state space, are known. This they do for consequence spaces, consisting of lotteries on sets of prizes. This paper adapts their work to consequence spaces that are connected topological spaces, without using lotteries on them. For example, consequences may now be money or commodity bundles.
Document type Article
Published at https://doi.org/10.1016/0165-4896(87)90007-2
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