Article ID: | iaor1989279 |
Country: | Switzerland |
Volume: | 19 |
Start Page Number: | 231 |
End Page Number: | 246 |
Publication Date: | May 1989 |
Journal: | Annals of Operations Research |
Authors: | Blume Lawrence, Brandenburger Adam, Dekel Eddie |
This overview focuses on lexicographic choice under conditions of uncertainty. First, lexicographic versions of traditional (von Neumann-Morgenstern) expected utility theory are described where the usual Archimedean axiom is weakened. The role of these lexicographic variants in explaining some well-known ‘paradoxes’ of choice theory is reviewed. Next, the significance of lexicographic choice for game theory is discussed. Finally, some lexicographic extensions of the classical maximin decision rule are described.