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Utility of gambling I: entropy modified linear weighted utility

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Abstract

Behavioral axioms about preference orderings among gambles and their joint receipt lead to numerical representations consisting of a subjective utility term plus a term depending upon the events and the subjective weights. The results here are for uncertain alternatives, in much the same sense as Savage’s usage. Several open problems are described. Results for the risky case are in a second article.

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Authors and Affiliations

  1. Institute for Mathematical Behavioral Sciences, Social Science Plaza, University of California, Irvine, CA, 92697-5100, USA

    R. Duncan Luce

  2. Department of Pure Mathematics, University of Waterloo, Waterloo, ON, N2L 3G1, Canada

    C. T. Ng & János Aczél

  3. Department of Psychology, University of Victoria, Victoria, V8W 3P5, Canada

    A. A. J. Marley

Authors
  1. R. Duncan Luce
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  2. C. T. Ng
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  3. A. A. J. Marley
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  4. János Aczél
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Correspondence to R. Duncan Luce.

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Luce, R.D., Ng, C.T., Marley, A.A.J. et al. Utility of gambling I: entropy modified linear weighted utility. Economic Theory 36, 1–33 (2008). https://doi.org/10.1007/s00199-007-0260-5

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  • DOI: https://doi.org/10.1007/s00199-007-0260-5

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