Expected utility from additive utility on semigroups
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In the present paper we study the framework of additive utility theory, obtaining new results derived from a concurrence of algebraic and topological techniques. Such techniques lean on the concept of a connected topological totally ordered semigroup. We achieve a general result concerning the existence of continuous and additive utility functions on completely preordered sets endowed with a binary operation ``+'', not necessarily being commutative or associative. In the final part of the paper we get some applications to expected utility theory, and a representation theorem for a class of complete preorders on a quite general family of real mixture spaces.
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- Expected utility from additive utility on semigroups
Theory and Decision
Volume 53, Issue 1 , pp 87-94
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- Preordered sets
- utility funtions
- continuous and additive utility
- expected utility
- Industry Sectors
- Author Affiliations
- 1. Departamento de Análisis Económico, Universidad de Zaragoza, Gran Vía 2-4, E-50005, Zaragoza, Spain
- 2. Departamento de Matemática e Informática, Universidad Pública de Navarra, Campus Arrosadía s.n., E-31006, Pamplona, Spain