Utility of Gambling II: Risk, Paradoxes, and Data

• Published in: Economic theory Vol. 36; no. 2; pp. 165 - 187
• Main Authors: Luce, R. Duncan, Ng, C. T., Marley, A. A. J., Aczél, János
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer 01.08.2008; Springer-Verlag; Springer Nature B.V
• Subjects: Algebra; Data visualization; Decision making; Decomposition; Economic theory; Economic Theory/Quantitative Economics/Mathematical Methods; Economic utility; Economics; Economics and Finance; Entropy; Expected utility; Gambling; Game Theory; Logical givens; Mathematical theorems; Microeconomics; Paradoxes; Probability; Probability distribution; Probability distributions; Public Finance; Research Article; Shannon entropy; Social and Behav. Sciences; Studies; Utility of gambling; Utility paradoxes; Duplex decomposition; Functional equations; Segregation; D46; Entropy; C91; Linear weighted utility; Expected utility; D81; Independence properties

We specialize our results on entropy-modified representations of event-based gambles to representations of probability-based gambles by assuming an implicit event structure underlying the probabilities, and adding assumptions linking the qualitative properties of the former and the latter. Under seg...