Subjective probabilities for state dependent continuous utility
This paper is a generalization of work by \textit{E. Karni}, \textit{D. Schmeidler} and \textit{K. Vind} [Econometrica 51, 1021-1031 (1983; Zbl 0516.90008)] concerned with the expected-utility-type decision making model with state-dependent utilities. It had been shown there how to recover in a unique way the involved subjective probabilities under known preferences, contingent upon a hypothetical probability distribution over the state space, and for consequence spaces consisting of lotteries on sets of prizes; this may also be extended for consequences being commodity bundles with linear utility. In this paper those results are further generalized to the case when the consequence spaces are connected topological spaces and utility is only continuous.
scientific article; zbMATH DE number 4057235