IDEAS home Printed from https://ideas.repec.org/a/kap/theord/v97y2024i4d10.1007_s11238-024-09991-x.html
   My bibliography  Save this article

A connection between von Neumann-Morgenstern expected utility and symmetric potential games

Author

Listed:
  • Mehmet S. Ismail

    (King’s College London)

  • Ronald Peeters

    (University of Otago)

Abstract

This paper establishes a previously unexplored connection between expected utility theory and potential games. Starting with a decision problem with a complete preference relation over lotteries on a finite set of alternatives, we construct a two-person symmetric game using a payoff function that represents the preference relation, and show that if the preference relation satisfies the von Neumann-Morgenstern expected utility axioms then the constructed game is a potential game. Conversely, starting with a two-player symmetric game, we (uniquely) construct a (complete) preference relation over the lotteries using the first player’s payoffs in the game, and show that if the game is a potential game then the resulting preference relation satisfies the expected utility axioms.

Suggested Citation

  • Mehmet S. Ismail & Ronald Peeters, 2024. "A connection between von Neumann-Morgenstern expected utility and symmetric potential games," Theory and Decision, Springer, vol. 97(4), pages 707-720, December.
    • Handle: RePEc:kap:theord:v:97:y:2024:i:4:d:10.1007_s11238-024-09991-x
    DOI: 10.1007/s11238-024-09991-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11238-024-09991-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11238-024-09991-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:theord:v:97:y:2024:i:4:d:10.1007_s11238-024-09991-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.