The Axiomatic Basis of Anticipated Utility: A Clarification
Quiggin (J. Econ. Behav. Organization3 (1982), 323-345) introduced anticipated ("rank-dependent") utility theory into decision making under risk. Questions have been raised about mathematical aspects of Quiggin′s analysis. This paper settles these questions and shows that a minor modification of Quiggin′s axioms leads to a useful and correct result, with features not found in other recent axiomatizations.
|Keywords||axiomatization, decision making, risk, utility theory|
|Persistent URL||dx.doi.org/10.1006/jeth.1994.1078, hdl.handle.net/1765/23186|
Quiggin, J., & Wakker, P.P.. (1994). The Axiomatic Basis of Anticipated Utility: A Clarification. Journal of Economic Theory, 64(2), 486–499. doi:10.1006/jeth.1994.1078