A Single-Stage Approach to Anscombe and Aumann's Expected Utility
July 1997
Article
volume 64, issue 3 pp 399-409.
| Related Files |
|---|
View PDF Version
(ASingleStage_1997.pdf, 1.6MB) |
Anscombe and Aumann showed that if one accepts the existence of a physical randomizing device such as a roulette wheel then Savage's derivation of subjective expected utility can be considerably simplified. They, however, invoked compound gambles to define their axioms. We demonstrate that the subjective expected utility derivation can be further simplified and need not invoke compound gambles. Our simplification is obtained by closely following the steps by which probabilities and utilities are elicited.
Keywords
Automatically Extracted Terms
- event
- lottery
- axiom
- horse
- utility
- probability
- assumption
- prize
- study
- proof
- preference
- stage
- decision
- theorem
- section
- roulette
- review
- model
- horse events
- disjointhorse events h
