Atemporal dynamic consistency and expected utility theory

DOI10.1016/0022-0531(91)90130-VMaRDI QIDQ1176685zbMATH OpenOpenAlexFDO

Authors Edi Karni, David Schmeidler

Publication date 25 June 1992

Published in Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/0022-0531(91)90130-v

zbMATH Keywords

compound lotteriesdynamic consistencyindependence axiom

Mathematics Subject Classification ID

Decision theory (91B06) Individual preferences (91B08) Utility theory (91B16)

Review text

It is shown that a preference relation defined on the set of conditional lotteries that satisfies consequentialism and the axiom of reduction of compound lotteries, satisfies the independence axiom of expected utility theory if and only if it satisfies dynamic consistency.

Recommendations

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Cites work

• Ascending bid auctions with behaviorally consistent bidders
• Consequentialist foundations for expected utility
• Dynamic Consistency, Revelations in Auctions and the Structure of Preferences
• scientific article; zbMATH DE number 4093118 (Why is no real title available?)
• Two-Stage Lotteries without the Reduction Axiom

Cited in

(19)

• Recursive smooth ambiguity preferences
• Absolute and relative time-consistent revealed preferences
• Many good choice axioms: When can many-good lotteries be treated as money lotteries?
• Dynamic consistency implies approximately expected utility preferences
• Unbounded behaviorally consistent stopping rules
• Dynamic consistency, consequentialism and reduction of compound lotteries
• Dynamic consistency and reference points
• Conditional non-expected utility preferences induced by mixture of lotteries: a note on the normative invalidity of expected utility theory
• Hybrid decision model and the ranking of experiments
• Dynamic consistency in incomplete information games under ambiguity
• scientific article; zbMATH DE number 4093118 (Why is no real title available?)
• A dynamic Ellsberg urn experiment
• Fundamental Principles of Modeling in Macroeconomics
• Sequential decision making without independence: a new conceptual approach
• Dynamic decision making: what do people do?
• Dynamic consistency for non-expected utility preferences
• Dynamic preference foundations of expected exponentially-discounted utility
• Incentive contracts when agents distort probabilities
• Valuing future cash flows with non separable discount factors and non additive subjective measures: conditional Choquet capacities on time and on uncertainty

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