TY - JOUR
T1 - Expected Qualitative Utility Maximization
AU - Lehmann, Daniel
PY - 2001/4
Y1 - 2001/4
N2 - A model for decision making that generalizes Expected Utility Maximization is presented. This model, Expected Qualitative Utility Maximization, encompasses the Maximin criterion. It relaxes both the Independence and the Continuity postulates. Its main ingredient is the definition of a qualitative order on nonstandard models of the real numbers and the consideration of nonstandard utilities. Expected Qualitative Utility Maximization is characterized by an original weakening of von Neumann-Morgenstern's postulates. Subjective probabilities may be defined from those weakened postulates, as Anscombe and Aumann (1963, Annals of Mathematical Statistics 34, 199-205) did from the original postulates. Subjective probabilities are numbers, not matrices as in the Subjective Expected Lexicographic Utility approach.
AB - A model for decision making that generalizes Expected Utility Maximization is presented. This model, Expected Qualitative Utility Maximization, encompasses the Maximin criterion. It relaxes both the Independence and the Continuity postulates. Its main ingredient is the definition of a qualitative order on nonstandard models of the real numbers and the consideration of nonstandard utilities. Expected Qualitative Utility Maximization is characterized by an original weakening of von Neumann-Morgenstern's postulates. Subjective probabilities may be defined from those weakened postulates, as Anscombe and Aumann (1963, Annals of Mathematical Statistics 34, 199-205) did from the original postulates. Subjective probabilities are numbers, not matrices as in the Subjective Expected Lexicographic Utility approach.
KW - Non-standard utilities
KW - Qualitative decision theory
KW - Utility theory
UR - http://www.scopus.com/inward/record.url?scp=0043145628&partnerID=8YFLogxK
U2 - 10.1006/game.1998.0787
DO - 10.1006/game.1998.0787
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AN - SCOPUS:0043145628
SN - 0899-8256
VL - 35
SP - 54
EP - 79
JO - Games and Economic Behavior
JF - Games and Economic Behavior
IS - 1-2
ER -