On the utility of gambling: Extending the approach of Meginniss (1976)

DOI10.1007/S00010-008-2931-0MaRDI QIDQ998745zbMATH OpenOpenAlexWikidataFDO

Authors Che Tat Ng, R. Duncan Luce, A. A. J. Marley

Publication date 29 January 2009

Published in Aequationes Mathematicae (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1007/s00010-008-2931-0

zbMATH Keywords

entropyexpected utilityfunctional equationsgamble decompositionutility of gambling

Mathematics Subject Classification ID

Functional equations for real functions (39B22) Probabilistic games; gambling (91A60) Utility theory (91B16) Measures of information, entropy (94A17)

Review text

This paper deals with the axiomatic approach of utility of gambling. The authors give a generalization of \textit{Meginniss'} paper: [Proc. Amer. Stat. Assoc. (1976)], under weaker conditions, following his framework. They define a gamble decomposition and develop the functional equation associated with it. From the solution, they obtain a representation of the utility function.

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• A process approach to the utility for gambling
• Gambling with the house money in capital expenditure decisions: An experimental analysis
• Utility of gambling under p(olynomial)-additive joint receipt and segregation or duplex decomposition
• A comparison of five models that predict violations of first-order stochastic dominance in risky decision making
• Utility of gambling when events are valued: An application of inset entropy
• Utility of gambling. I: Entropy modified linear weighted utility
• Purity, resistance, and innocence in utility theory
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