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A Belief-Dependent Utility Model

A Belief-Dependent Utility Model This paper proposes a belief-dependent utility function(BDU). The BDU is based on the fact that the beliefs of acts have inconsistent impacts on utilities. The existence and uniqueness result of the BDU function is provided. It is then proved that the BDU function can provide risk attitude analysis and general comparative analysis as powerful as those presented by the classical expected utility theories. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Acta Mathematicae Applicatae Sinica Springer Journals

A Belief-Dependent Utility Model

Fan, Yu-lian
Acta Mathematicae Applicatae Sinica , Volume 37 (4) – Oct 1, 2021
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Publisher
Springer Journals
Copyright
Copyright © The Editorial Office of AMAS & Springer-Verlag GmbH Germany 2021
ISSN
0168-9673
eISSN
1618-3932
DOI
10.1007/s10255-021-1038-4
Publisher site
See Article on Publisher Site

Abstract

This paper proposes a belief-dependent utility function(BDU). The BDU is based on the fact that the beliefs of acts have inconsistent impacts on utilities. The existence and uniqueness result of the BDU function is provided. It is then proved that the BDU function can provide risk attitude analysis and general comparative analysis as powerful as those presented by the classical expected utility theories.

Journal

Acta Mathematicae Applicatae Sinica – Springer Journals

Published: Oct 1, 2021

Keywords: belief; utility function; risk aversion; 91B16

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