Smooth preferences and the approximate expected utility hypothesis

DOI10.1016/0022-0531(87)90024-XMaRDI QIDQ1821673zbMATH OpenFDO

Authors Beth Allen

Publication date 1987

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

Full work available at URL https://doi.org/10.1016/0022-0531(87)90024-X

zbMATH Keywords

continuous complete preorders over lotteriesexpected utility hypothesisinfinite dimensional set of probability measuressmoothness conditions

Mathematics Subject Classification ID

Utility theory (91B16)

Review text

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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Cites work

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Cited in

(9)

• A correspondence theorem between expected utility and smooth utility
• Non-transitive smooth preferences
• Two errors in the `Allais impossibility theorem'
• How quasi rational are you? II. Chern curvature measures local failure of the expected utility maximization axioms
• On preference relations that admit smooth utility functions
• A nonsmooth approach to nonexpected utility theory under risk
• scientific article; zbMATH DE number 830010 (Why is no real title available?)
• A Model of Utility Smoothing
• Intergenerational social choice without the Pareto principle

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