Utility of Gambling I: Entropy Modified Linear Weighted Utility

Behavioral axioms about preference orderings among gambles and their joint receipt lead to numerical representations consisting of a subjective utility term plus a term depending upon the events and the subjective weights. The results here are for uncertain alternatives, in much the same sense as Sa...

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Published inEconomic theory Vol. 36; no. 1; pp. 1 - 33
Main Authors Luce, R. Duncan, Ng, C. T., Marley, A. A. J., Aczél, János
Format Journal Article
LanguageEnglish
Published Berlin/Heidelberg Springer 01.07.2008
Springer-Verlag
Springer Nature B.V
Subjects
Ambivalence
Axioms
Decomposition
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Entropy
Expected utility
Experiments
Gambling
Game Theory
Lotteries
Mathematical rings
Mathematical theorems
Mathematics
Microeconomics
Property partitioning
Public Finance
Recursion
Research Article
Social and Behav. Sciences
Studies
Utility of gambling
Duplex decomposition
Functional equations
Segregation
D46
Entropy
C91
Linear weighted utility
D81
Joint receipt
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Summary:Behavioral axioms about preference orderings among gambles and their joint receipt lead to numerical representations consisting of a subjective utility term plus a term depending upon the events and the subjective weights. The results here are for uncertain alternatives, in much the same sense as Savage's usage. Several open problems are described. Results for the risky case are in a second article.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0938-2259
1432-0479
DOI:10.1007/s00199-007-0260-5