An axiomatic characterization of preferences under uncertainty: Weakening the independence axiom
type: Item
instance of: scholarly article
title: An axiomatic characterization of preferences under uncertainty: Weakening the independence axiom
zbMATH Open document ID: 0611.90007
DOI: 10.1016/0022-0531(86)90076-1
author: Eddie Dekel
published in: Journal of Economic Theory
publication date: 1986-01-01T00:00:00Z
review text: The independence axiom used to derive the expected utility representation of preferences over lotteries is replaced by requiring only convexity, in terms of probability mixtures, of indifference sets. Two axiomatic characterizations are proven, one for simple measures and the other continuous and for all probability measures. The representations are structurally similar to expected utility, and are unique up to a generalization of affine transformations. First-order stochastic dominance and risk aversion are discussed using a method which finds an expected utility approximation to these preferences without requiring differentiability of the preference functional.
Mathematics Subject Classification ID: 91B08
Mathematics Subject Classification ID: 91B16
zbMATH DE Number: 3989037
zbMATH Keywords: independence axiom
zbMATH Keywords: expected utility representation of preferences
zbMATH Keywords: axiomatic characterizations
zbMATH Keywords: First-order stochastic dominance
zbMATH Keywords: risk aversion
zbMATH Keywords: expected utility approximation
MaRDI profile type: Publication
full work available at URL: 0022-0531(86)90076-1
OpenAlex ID: W2025925112
Wikidata QID: Q114685253
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description: scientific article; zbMATH DE number 3989037