Decomposition of utility functions on subsets of product sets

Decomposition of utility functions on subsets of product sets

0.00 Avg rating0 Votes
Article ID: iaor20002916
Country: United States
Volume: 44
Issue: 4
Start Page Number: 609
End Page Number: 616
Publication Date: Jul 1996
Journal: Operations Research
Authors: ,
Abstract:

The standard decomposition theorem for additive and multiplicative utility functions assumes that the outcome set is a whole product set. In this paper this assumption is relaxed, and the question of whether or not natural revision of this theorem necessarily holds is investigated. This paper proves that two additional conditions are needed for the decomposition theorem to hold in the context where the outcome set is a subset of a Cartesian product. It is argued that these two new conditions are satisfied by a large family of subsets corresponding to significant real-world problems. Furthermore research avenues are suggested including a generalization of this new decomposition result to nonexpected utility theories.

Reviews

Required fields are marked *. Your email address will not be published.