A simple proof of a basic result in nonexpected utility theory
Article Abstract:
A research study simplifies E. Dekel's implicit expected utility representation of a preference ordering that fulfills the conditions of betweenness. The proof is more concise and intuitive compared to S.H. Chew and L.G. Epstein's work, which consists of two-and-a-half pages of algebraic equations. The proposed proof highlights the intuitive process that led to the development of Dekel's axioms, which imply that indifference sets are actually linear sets defined by hyperplanes, and that hyperplanes are defined by linear functions.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1995
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A biological basis for expected and non-expected utility
Article Abstract:
A biological model used in maximizing expected offspring is used in evaluating the gambling attitudes toward commodities. The model indicates that the biological and economic requisites are similar in a fixed environment while the biological model is less susceptible to individual attitude towards risks. This deviation implies the importance of risk evaluation in determining the maximum utilities in gambling over commodities.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1996
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