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Quasi-separable preferences

Author

Listed:
  • Wei-zhi Qin

    (National Taiwan University
    Alpha Intelligence)

  • Hendrik Rommeswinkel

    (National Taiwan University
    Waseda University)

Abstract

Utility functions often lack additive separability, presenting an obstacle for decision theoretic axiomatizations. We address this challenge by providing a representation theorem for utility functions of quasi-separable preferences of the form $$u(x,y,z)=f(x,z) + g(y,z)$$ u ( x , y , z ) = f ( x , z ) + g ( y , z ) on subsets of topological product spaces. These functions are additively separable only when holding z fixed but are cardinally comparable for different values of z. We then generalize the result to spaces with more than three dimensions and provide applications to belief elicitation, inequity aversion, intertemporal choice, and rank-dependent utility.

Suggested Citation

  • Wei-zhi Qin & Hendrik Rommeswinkel, 2024. "Quasi-separable preferences," Theory and Decision, Springer, vol. 96(4), pages 555-595, June.
  • Handle: RePEc:kap:theord:v:96:y:2024:i:4:d:10.1007_s11238-023-09962-8
    DOI: 10.1007/s11238-023-09962-8
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    References listed on IDEAS

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