Consequentialist foundations for expected utility (Q1103503)

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Consequentialist foundations for expected utility
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    Consequentialist foundations for expected utility (English)
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    1988
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    Behaviour norms are considered for decision trees which allow both objective probabilities and uncertain states of the world with unknown probabilities. Terminal nodes have consequences in a given domain. Behaviour is required to be consistent in subtrees. Consequential behaviour, by definition, reveals a consequence choice function independent of the structure of the decision tree. It implies that behaviour reveals a revealed preference ordering satisfying both the independence axiom and a novel form of sure-thing principle. Continuous consequentialist behaviour must be expected utility maximizing. Other plausible assumptions then imply additive utilities, subjective probabilities, and Bayes' rule.
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    expected utility
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    subjective probability
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    decision trees
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    uncertain states of the world
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    Consequential behaviour
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    sure-thing principle
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    Bayes' rule
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