The Axiomatic Basis of Anticipated Utility: A Clarification
Journal of Economic Theory , Volume 64 - Issue 2 p. 486- 499
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.
|axiomatization, decision making, risk, utility theory|
|Criteria for Decision-Making under Risk and Uncertainty (jel D81)|
|Journal of Economic Theory|
|Organisation||Erasmus School of Economics|
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