Abstract
It is shown that assumptions about risk aversion, usually studied under the pre-supposition of expected utility maximization, have a surprising extra merit at an earlier stage of the measurement work: together with the sure-thing principle, these assumptions imply subjective expected utility maximization for monotonic continuous weak orders.
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This study was carried out while the author was at the Netherlands Central Bureau of Statistics, Department of Statistical Methods, Voorburg, The Netherlands.
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Wakker, P.P. Subjective expected utility with nonincreasing risk aversion. Ann Oper Res 19, 219–228 (1989). https://doi.org/10.1007/BF02283522
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DOI: https://doi.org/10.1007/BF02283522