From Outcomes to Acts: A Non-Standard Axiomatization of the Expected Utility Principle
2004 (English)In: Journal of Philosophical Logic, ISSN 0022-3611, E-ISSN 1573-0433, Vol. 33, no 4, 361-378 p.Article in journal (Refereed) Published
This paper presents an axiomatization of the principle of maximizing expected utility that does not rely on the independence axiom or sure-thing principle. Perhaps more importantly the new axiomatization is based on an ex ante approach, instead of the standard ex post approach. An ex post approach utilizes the decision maker's preferences among risky acts for generating a utility and a probability function, whereas in the ex ante approach a set of preferences among potential outcomes are on the input side of the theory and the decision maker's preferences among risky acts on the output side.
Place, publisher, year, edition, pages
2004. Vol. 33, no 4, 361-378 p.
ex ante, ex post, expected utility, Savage, von Neumann, Morgenstern
IdentifiersURN: urn:nbn:se:kth:diva-13600DOI: 10.1023/B:LOGI.0000036852.81010.dbISI: 000223705700002ScopusID: 2-s2.0-70949101449OAI: oai:DiVA.org:kth-13600DiVA: diva2:326158
QC 20100622 QC 201109262010-06-222010-06-222011-09-26Bibliographically approved