Consequentialist foundations for expected utility
type: Item
instance of: scholarly article
title: Consequentialist foundations for expected utility
zbMATH Open document ID: 0645.90002
DOI: 10.1007/BF00129168
published in: Theory and Decision
publication date: 1988-01-01T00:00:00Z
review text: Behaviour norms are considered for decision trees which allow both objective probabilities and uncertain states of the world with unknown probabilities. Terminal nodes have consequences in a given domain. Behaviour is required to be consistent in subtrees. Consequential behaviour, by definition, reveals a consequence choice function independent of the structure of the decision tree. It implies that behaviour reveals a revealed preference ordering satisfying both the independence axiom and a novel form of sure-thing principle. Continuous consequentialist behaviour must be expected utility maximizing. Other plausible assumptions then imply additive utilities, subjective probabilities, and Bayes' rule.
Mathematics Subject Classification ID: 91B06
Mathematics Subject Classification ID: 91B16
zbMATH DE Number: 4053295
zbMATH Keywords: expected utility
zbMATH Keywords: subjective probability
zbMATH Keywords: decision trees
zbMATH Keywords: uncertain states of the world
zbMATH Keywords: Consequential behaviour
zbMATH Keywords: sure-thing principle
zbMATH Keywords: Bayes' rule
author: Peter J. Hammond
MaRDI profile type: Publication
cites work: Le Comportement de l'Homme Rationnel devant le Risque: Critique des Postulats et Axiomes de l'Ecole Americaine
cites work: A Definition of Subjective Probability
cites work: Q5561637
cites work: Q3820326
cites work: Q3999332
cites work: Risk, ambiguity and the Savage axioms
cites work: Q3962738
cites work: Unreliable probabilities, risk taking, and decision making
cites work: Changing Tastes and Coherent Dynamic Choice
cites work: Q3329157
cites work: Q3820322
cites work: Q5832753
cites work: An Axiomatic Approach to Measurable Utility
cites work: The Structure of Intertemporal Preferences under Uncertainty and Time Consistent Plans
cites work: Vickrey auctions in the theory of expected utility with rank-dependent probabilities
cites work: On State Dependent Preferences and Subjective Probabilities
cites work: An axiomatic derivation of subjective probability, utility, and evaluation functions
cites work: Q5571447
cites work: Probability, Utility, and the Independence Axiom
cites work: Q5826088
cites work: Q4131415
cites work: Q4065545
cites work: Conditionalization and observation
cites work: Q5844986
cites work: Consistent Intertemporal Decision-Making under Uncertainty
description: scientific article; zbMATH DE number 4053295