Subjective Linear Utility on Products of Mixture Sets
In Part II of the book, S is a set of states of the world, and ℐ is a Boolean algebra of subsets of S. We refer to A ∈ ℐ as an event. As usual, ∅ will denote the empty event. In general, we reserve the phrase null event to denote any event that the individual believes to be impossible, i.e. an event that cannot possibly obtain or which the individual feels cannot contain a state that describes the true nature of the world about which the individual is uncertain.
KeywordsSubjective Probability Free Pass Independence Axiom Expected Utility Model Subjective Expected Utility
Unable to display preview. Download preview PDF.