Axiomatic Foundations for a Class of Generalized Expected Utility: Algebraic Expected Utility [article]

Paul Weng
2012 arXiv   pre-print
Expected Utility: Algebraic Expected Utility In this paper, we provide two axiomatizations of algebraic expected utility, which is a particular generalized expected utility, in a von Neumann-Morgenstern setting, i.e. uncertainty representation is supposed to be given and here to be described by a plausibility measure valued on a semiring, which could be partially ordered. We show that axioms identical to those for expected utility entail that preferences are represented by an algebraic expected
more » ... utility. This algebraic approach allows many previous propositions (expected utility, binary possibilistic utility,...) to be unified in a same general framework and proves that the obtained utility enjoys the same nice features as expected utility: linearity, dynamic consistency, autoduality of the underlying uncertainty measure, autoduality of the decision criterion and possibility of modeling decision maker's attitude toward uncertainty.
arXiv:1206.6867v1 fatcat:ludy6ulyg5ggnhlzzmnnul7uba