A unified derivation of classical subjective expected utility models through cardinal utility (Q1304440)

In this paper the authors give a unified treatment of the expected utility models of de Finetti, Anscombe and Aumann, von Neumann and Morgenstern, Ramsey. For a finite set of states and a convex set of outcomes SEU with continuous utility and positive probabilities can be characterized by a monotonic continuous weak order that satisfies trade-off consistency. Moreover utility is cardinal. This theorem is used to derive the above mentioned models (theorems 2, 6, 7, 8) where the common feature is a cardinal utility index independent of states and probabilities. Especially relations of trade-off consistency to monotonocity, additivity, von Neumann-Morgenstern independence, exchangeability, sure thing principle are analyzed.