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.

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doi.org/10.1006/jeth.1994.1078, hdl.handle.net/1765/23186
Journal of Economic Theory
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