Tesfatsion, Leigh2009-11-062009-11-061976-04Tesfatsion, L., (1976), ""Bayes' Theorem" for Utility", Discussion Paper No. 65, Center for Economic Research, Department of Economics, University of Minnesota.https://hdl.handle.net/11299/54818An algorithm is proposed for updating an initial period objective (risk) function by means of transitional utility (loss) assessments, in a manner analogous to Bayes' theorem for probability. Specification of updated probability assessments is not required. The algorithm is shown to be robust with respect to a fully updated procedure, given certain empirically meaningful restrictions. Existence of the initial period objective function is axiomatized in the context of a model which adopts a symmetrical approach to utility and probability.en-USWorking Paper