| Abstract: | Rankings of decision alternatives based on total and on differential monetary amounts may in general be inconsistent under uncertainty. In the following cases, either approach is valid and hence yields consistent rankings: (i) with expected values, provided that the differential amounts have been coherently determined and are constant within states (but may differ across states); (ii) with exponential utility functions if the shared and differential amounts are statistically independent; or (iii) in a market valuation context, assuming diversification and implicit separate market values for differential and shared amounts. |
