Browsing by Subject "Expected utility"
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Item A Revealed-Preference Implication of Weighted Utility Decisions Under Uncertainty(Center for Economic Research, Department of Economics, University of Minnesota, 1993-09) Park, In-UckRevealed preference of the weighted utility theory of Chew (1983) is investigated in the same set-up as Green and Osband (1991) for expected utility theory; the structure of the partition of the state simplex according to the chosen act is examined. It is shown that the boundary between two partition elements generated by a weighted utility is the solution set to a quadratic equation. Moreover, except for special "symmetric" pairs of acts, weighted utilities in a generic set produce revealed preference partitions with non-affine boundaries, so that they are distinguishable from those of expected utilities which have affine boundaries according to Green and Osband.