Theory and Decision

, Volume 53, Issue 1, pp 87–94 | Cite as

Expected utility from additive utility on semigroups

  • Juan C. Candeal
  • Juan R. De Miguel
  • Esteban Induráin

Abstract

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.

Preordered sets utility funtions continuous and additive utility expected utility semigroups 

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Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Juan C. Candeal
    • 1
  • Juan R. De Miguel
    • 2
  • Esteban Induráin
    • 2
  1. 1.Departamento de Análisis EconómicoUniversidad de ZaragozaZaragozaSpain
  2. 2.Departamento de Matemática e InformáticaUniversidad Pública de NavarraPamplonaSpain

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