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Expected utility from additive utility on semigroups
Authors:Candeal  Juan C  De Miguel  Juan R  Induráin  Esteban
Institution:(1) Departamento de Análisis Económico, Universidad de Zaragoza, Gran Vía 2-4, E-50005 Zaragoza, Spain;(2) Departamento de Matemática e Informática, Universidad Pública de Navarra, Campus Arrosadía s.n., E-31006 Pamplona, Spain
Abstract:In the present paper we study the framework of additive utility theory, obtaining new results derived from a concurrence of algebraic and topological techniques. Such techniques lean on the concept of a connected topological totally ordered semigroup. We achieve a general result concerning the existence of continuous and additive utility functions on completely preordered sets endowed with a binary operation ``+', not necessarily being commutative or associative. In the final part of the paper we get some applications to expected utility theory, and a representation theorem for a class of complete preorders on a quite general family of real mixture spaces.
Keywords:Preordered sets  utility funtions  continuous and additive utility  expected utility  semigroups
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