Randomizing without randomness (Q6107387)

This article explores the concepts of preference midpoint and utility midpoint. The article develops a method for deriving utility midpoints from preferences assuming that the payoffs are consumption plans and the preferences satisfy a minimal form of additive separability over such plans. In this context, an axiomatic description of the second-order subjective expected utility (SOSEU) model as distinct from subjective expected utility (SEU) is conceived. The separability requirement assumed encompasses the scenario in which the decision maker applies geometric or hyperbolic discounting to future utilities.