Fear of loss, inframodularity, and transfers (Q435911): Difference between revisions

The authors define the concept of an inframodular multivariate function, which is a natural generalization of concavity for multivariate functions. Further, the concept of inframodular transfers is defined and used for the characterization of decision maker's comparing finite lotteries. It is shown that a finite lottery is preferred to another by all expected utility maximizers with inframodular transfers.