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Journal of Risk and Uncertainty

, Volume 6, Issue 1, pp 99–107 | Cite as

The measure representation: A correction

  • Uzi Segal
Article

Abstract

Wakker (1991) and Puppe (1990) point out a mistake in theorem 1 in Segal (1989). This theorem deals with representing preference relations over lotteries by the measure of their epigraphs. An error in the theorem is that it gives wrong conditions concerning the continuity of the measure. This article corrects the error. Another problem is that the axioms do not imply that the measure is bounded; therefore, the measure representation applies only to subsets of the space of lotteries, although these subsets can become arbitrarily close to the whole space of lotteries. Some additional axioms (Segal, 1989, 1990) implying that the measure is a product measure (and hence anticipated utility) also guarantee that the measure is bounded.

Key words

anticipated utility rank-dependent probabilities measure representation 

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References

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Copyright information

© Kluwer Academic Publishers 1993

Authors and Affiliations

  • Uzi Segal
    • 1
  1. 1.Department of EconomicsUniversity of TorontoTorontoCanada

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