Subjectively expected state-independent utility on state-dependent consequence domains (Q2739358)

Axiomatic construction of rational decisions under uncertainty is proposed assuming consequence domain depending on the states of the world. The expected utility maximization principle is derived from five axioms which are similar to the axioms by Anscombe and Aumann; however state-dependent consequence domains are allowed. The system of the proposed axioms imply that the utilities are state independent in the sense of giving an equal value to any consequence that happens to occur in more than one state-dependent consequence domain. Finally, it is proved that an ordering of contingent consequence functions (acts, horse lotteries) is represented by the expected utility defined by the unique state independent utilities and unique subjective probabilities.NEWLINENEWLINEFor the entire collection see [Zbl 0958.00049].