How a Certain Internal Consistency Entails the Expected Utility Dogma.

If I am "coherent," in the sense that I can always replace any subset of outcomes by their certainty equivalent (occuring with the sum of their probabilities), then I must act according to the dogma of maximizing an Exp {U}, ruling out Machina (1982), Allais (1952), and Ysidro (1950) functionals. Copyright 1988 by Kluwer Academic Publishers

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Year of publication:	1988
Authors:	Samuelson, Paul A
Published in:	Journal of Risk and Uncertainty. - Springer. - Vol. 1.1988, 4, p. 389-93
Publisher:	Springer

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005678115