Expected utility theory from the frequentist perspective created by Tai-Wei Hu

By:

Hu, Tai-Wei [author]

Material type: Text

TextSeries: Economic theory ; Volume 53, number 1Berlin: Springer, 2013Content type:

text

Media type:

unmediated

Carrier type:

volume

ISSN:

09382259

Subject(s):

LOC classification:

HB119 ECO

Online resources:

Click here to access online

Abstract: We present an axiomatization of expected utility from the frequentist perspective. It starts with a preference relation on the set of infinite sequences with limit relative frequencies. We consider three axioms parallel to the ones for the von Neumann–Morgenstern (vN–M) expected utility theory. Limit relative frequencies correspond to probability values in lotteries in the vN–M theory. This correspondence is used to show that each of our axioms is equivalent to the corresponding vN–M axiom in the sense that the former is an exact translation of the latter. As a result, a representation theorem is established: The preference relation is represented by an average of utilities with weights given by the relative frequencies.

Reviews from LibraryThing.com:

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Current library	Call number	Vol info	Copy number	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HB119 ECO (Browse shelf(Opens below))	Vol. 53, no.1 (pages 9-26)	SP21035	Not for loan	For in house use only

Browsing Main Library shelves, Shelving location: - Special Collections Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	HB119 ECO Deviant generations, Ricardian equivalence, and growth cycles	HB119 ECO On the emergence of competitive equilibrium growth cycles	HB119 ECO Symposium: logic and economics—interactions between subjective thinking and objective worlds	HB119 ECO Expected utility theory from the frequentist perspective	HB119 ECO Partial memories, inductively derived views, and their interactions with behavior	HB119 ECO Evaluations of epistemic components for resolving the muddy children puzzle	HB119 ECO Semantics for intuitionistic epistemic logics of shallow depths for game theory	Next

We present an axiomatization of expected utility from the frequentist perspective. It starts with a preference relation on the set of infinite sequences with limit relative frequencies. We consider three axioms parallel to the ones for the von Neumann–Morgenstern (vN–M) expected utility theory. Limit relative frequencies correspond to probability values in lotteries in the vN–M theory. This correspondence is used to show that each of our axioms is equivalent to the corresponding vN–M axiom in the sense that the former is an exact translation of the latter. As a result, a representation theorem is established: The preference relation is represented by an average of utilities with weights given by the relative frequencies.

There are no comments on this title.

to post a comment.

here