Smooth preferences and the approximate expected utility hypothesis (Q1821673)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Smooth preferences and the approximate expected utility hypothesis |
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Smooth preferences and the approximate expected utility hypothesis (English)
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1987
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Mild smoothness conditions on continuous complete preorders over lotteries imply that various local versions of the expected utility hypothesis are satisfied, i.e. for small deviations, there is a utility (representing the individual's preferences) that is linear in probabilities. For these results, notions of smooth preferences over an infinite dimensional set of probability measures are developed.
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smoothness conditions
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continuous complete preorders over lotteries
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expected utility hypothesis
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infinite dimensional set of probability measures
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