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Economic Theory

, Volume 36, Issue 1, pp 1–33 | Cite as

Utility of gambling I: entropy modified linear weighted utility

  • R. Duncan Luce
  • C. T. Ng
  • A. A. J. Marley
  • János Aczél
Research Article

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.

Keywords

Duplex decomposition Entropy Functional equations Joint receipt Linear weighted utility Segregation Utility of gambling 

JEL Classification Numbers

C91 D46 D81 

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Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  • R. Duncan Luce
    • 1
  • C. T. Ng
    • 2
  • A. A. J. Marley
    • 3
  • János Aczél
    • 2
  1. 1.Institute for Mathematical Behavioral Sciences, Social Science PlazaUniversity of CaliforniaIrvineUSA
  2. 2.Department of Pure MathematicsUniversity of WaterlooWaterlooCanada
  3. 3.Department of PsychologyUniversity of VictoriaVictoriaCanada

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