IDEAS home Printed from https://ideas.repec.org/p/hit/cisdps/627.html
   My bibliography  Save this paper

Expected utility without full transitivity

Author

Listed:
  • Bossert, Walter
  • Suzumura, Kotaro

Abstract

We generalize the classical expected-utility criterion by weakening transitivity to Suzumura consistency. In the absence of full transitivity, reflexivity and completeness no longer follow as a consequence of the system of axioms employed and a richer class of rankings of probability distributions results. This class is characterized by means of standard expected-utility axioms in addition to Suzumura consistency. An important feature of some members of our new class is that they allow us to soften the negative impact of wellknown paradoxes without abandoning the expected-utility framework altogether.

Suggested Citation

  • Bossert, Walter & Suzumura, Kotaro, 2014. "Expected utility without full transitivity," CIS Discussion paper series 627, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:cisdps:627
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/26741/cis_dp627.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
    2. Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro & 鈴村, 興太郎, 2002. "Consistent Rationalizability," Discussion Paper 82, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    3. Matthew Rabin, 1998. "Psychology and Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 11-46, March.
    4. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    5. Amartya Sen, 1969. "Quasi-Transitivity, Rational Choice and Collective Decisions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 36(3), pages 381-393.
    6. Juan Dubra & Fabio Maccheroni & Efe A. Ok, 2004. "Expected Utility Without the Completeness Axiom," Yale School of Management Working Papers ysm404, Yale School of Management.
    7. Bossert, Walter & Suzumura, Kotaro, 2010. "Consistency, Choice, and Rationality," Economics Books, Harvard University Press, number 9780674052994, Spring.
    8. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    9. Fishburn, Peter C, 1991. "Nontransitive Preferences in Decision Theory," Journal of Risk and Uncertainty, Springer, vol. 4(2), pages 113-134, April.
    10. Dubra, Juan & Maccheroni, Fabio & Ok, Efe A., 2004. "Expected utility theory without the completeness axiom," Journal of Economic Theory, Elsevier, vol. 115(1), pages 118-133, March.
    11. Kotaro Suzumura, 1978. "On the Consistency of Libertarian Claims," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 45(2), pages 329-342.
    12. repec:bla:econom:v:72:y:2005:i:286:p:185-200 is not listed on IDEAS
    13. Tversky, Amos & Thaler, Richard H, 1990. "Anomalies: Preference Reversals," Journal of Economic Perspectives, American Economic Association, vol. 4(2), pages 201-211, Spring.
    14. Robert J. Aumann, 2000. "Collected Papers - Vol. 1," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011549, April.
    15. David E. Bell, 1982. "Regret in Decision Making under Uncertainty," Operations Research, INFORMS, vol. 30(5), pages 961-981, October.
    16. Fishburn, Peter C & LaValle, Irving H, 1988. "Context-Dependent Choice with Nonlinear and Nontransitive Preferences," Econometrica, Econometric Society, vol. 56(5), pages 1221-1239, September.
    17. repec:bla:econom:v:43:y:1976:i:172:p:381-90 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    2. Buturak, Gökhan & Evren, Özgür, 2017. "Choice overload and asymmetric regret," Theoretical Economics, Econometric Society, vol. 12(3), September.
    3. Susumu Cato, 2013. "Quasi-decisiveness, quasi-ultrafilter, and social quasi-orderings," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(1), pages 169-202, June.
    4. Simone Cerreia-Vioglio & Efe A. Ok, 2018. "The Rational Core of Preference Relations," Working Papers 632, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    5. Denis Bouyssou & Marc Pirlot, 2008. "On some ordinal models for decision making under uncertainty," Annals of Operations Research, Springer, vol. 163(1), pages 19-48, October.
    6. George Wu, 1999. "Anxiety and Decision Making with Delayed Resolution of Uncertainty," Theory and Decision, Springer, vol. 46(2), pages 159-199, April.
    7. Michael Birnbaum & Ulrich Schmidt, 2008. "An experimental investigation of violations of transitivity in choice under uncertainty," Journal of Risk and Uncertainty, Springer, vol. 37(1), pages 77-91, August.
    8. Walter Bossert & Marc Fleurbaey, 2015. "An Interview with Kotaro Suzumura," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(1), pages 179-208, January.
    9. Ben Irons & Cameron Hepburn, 2007. "Regret Theory and the Tyranny of Choice," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 191-203, June.
    10. Faro, José Heleno, 2015. "Variational Bewley preferences," Journal of Economic Theory, Elsevier, vol. 157(C), pages 699-729.
    11. Han Bleichrodt & Ulrich Schmidt, 2002. "A Context-Dependent Model of the Gambling Effect," Management Science, INFORMS, vol. 48(6), pages 802-812, June.
    12. Eddie Dekel & Barton L. Lipman, 2010. "How (Not) to Do Decision Theory," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 257-282, September.
    13. Marc Willinger, 1990. "La rénovation des fondements de l'utilité et du risque," Revue Économique, Programme National Persée, vol. 41(1), pages 5-48.
    14. Andrea C. Hupman & Jay Simon, 2023. "The Legacy of Peter Fishburn: Foundational Work and Lasting Impact," Decision Analysis, INFORMS, vol. 20(1), pages 1-15, March.
    15. Andrew J. Keith & Darryl K. Ahner, 2021. "A survey of decision making and optimization under uncertainty," Annals of Operations Research, Springer, vol. 300(2), pages 319-353, May.
    16. Elena Cettolin & Arno Riedl, 2015. "Revealed Incomplete Preferences under Uncertainty," CESifo Working Paper Series 5359, CESifo.
    17. Chen Li & Zhihua Li & Peter Wakker, 2014. "If nudge cannot be applied: a litmus test of the readers’ stance on paternalism," Theory and Decision, Springer, vol. 76(3), pages 297-315, March.
    18. Jason R. W. Merrick & Philip Leclerc, 2016. "Modeling Adversaries in Counterterrorism Decisions Using Prospect Theory," Risk Analysis, John Wiley & Sons, vol. 36(4), pages 681-693, April.
    19. Yan Li & David Ahlstrom, 2020. "Risk-taking in entrepreneurial decision-making: A dynamic model of venture decision," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 899-933, September.
    20. Hans-Rüdiger Pfister & Gisela Böhm, 2008. "The multiplicity of emotions: A framework of emotional functions in decision making," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3, pages 5-17, January.

    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hit:cisdps:627. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Digital Resources Section, Hitotsubashi University Library (email available below). General contact details of provider: https://edirc.repec.org/data/cihitjp.html .

    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.