A functional equation arising from simultaneous utility representations (Q1411440): Difference between revisions

This paper works out consequences of assuming that two families of utility preferences, one additive and the other of increasing increments, hold simultaneously for a class of binary gambles. The assumption leads to the functional equation \[ f[h(x-y)+y]=f[h(x)]-f[h(y)]+f(y) \] for \(0\leq y\leq x<\kappa \), and the inequality \(h(x)\leq x\) for \(0\leq x\leq \kappa \), for strictly increasing functions \(f,h\) on a real interval \([0,\kappa [ \). The authors find all differentiable solutions. An open problem is to find all solutions without assuming differentiability.