Independent postulates for subjective expected utility

Mikko Harju*, Juuso Liesiö, Kai Virtanen

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)
88 Downloads (Pure)

Abstract

Although the subjective expected utility (SEU) theory is more than 60 years old, it was recently discovered by Hartmann (Econometrica 88(1):203–205, 2020, https://doi.org/10.3982/ECTA17428) that one of the original seven postulates is redundant, i.e., it is implied by the other six postulates. In this brief communication, we show that this redundant axiom is the only one that is implied by the other axioms, thereby establishing that the remaining six postulates form an independent axiomatic system. This result further streamlines the preference assumptions underlying the SEU theory.

Original languageEnglish
Pages (from-to)597-606
Number of pages10
JournalTheory and Decision
Volume96
Issue number4
Early online date23 Oct 2023
DOIs
Publication statusPublished - Jun 2024
MoE publication typeA1 Journal article-refereed

Keywords

  • Decision analysis
  • Decision theory
  • Subjective expected utility
  • Subjective probability

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