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The projective independence axiom (1994)

Chew, Soo Hong ; Epstein, Larry G. ; Segal, Uzi

Springer

Economic theory 4 (1994), S. 189-215

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ISSN: 1432-0479

Source: Springer Online Journal Archives 1860-2000

Topics: Economics

Notes: Summary A new axiom for preference orderings over lotteries, called the projective independence axiom, is formulated. Given suitable continuity and monotonicity assumptions, the axiom implies that utility is either in the weighted utility class or is quadratic in probabilities. The betweenness axiom is used to distinguish between these two classes of functions.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1007/BF01221200

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