Living without state-independence of utilities |
| |
Authors: | Brian Hill |
| |
Institution: | 1.GREGHEC, HEC Paris,Jouy-en-Josas,France |
| |
Abstract: | This article is concerned with the representation of preferences which do not satisfy the ordinary axioms for state-independent
utilities. After suggesting reasons for not being satisfied with solutions involving state-dependent utilities, an alternative
representation shall be proposed involving state-independent utilities and a situation-dependent factor. The latter captures the interdependencies between states and consequences. Two sets of axioms are proposed, each permitting
the derivation of subjective probabilities, state-independent utilities, and a situation-dependent factor, and each operating
in a different framework. The first framework involves the concept of a decision situation—consisting of a set of states, a set of consequences and a preference relation on acts; the probabilities, utilities and
situation-dependent factor are elicited by referring to other, appropriate decision situations. The second framework, which
is technically related, operates in a fixed decision situation; particular “subsituations” are employed in the derivation
of the representation. Possible interpretations of the situation-dependent factor and the notion of situation are discussed. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|