Some Functional Equations Connected with the Utility of Gains and Losses

Mathematics;Utility;functional equations;binary gambles;RDU representation

Titioura, Andrei

University of Waterloo

关键词: Mathematics;    Utility;    functional equations;    binary gambles;    RDU representation;   

Others  :  https://uwspace.uwaterloo.ca/bitstream/10012/1013/1/aatitioura2002.pdf

瑞士|英语

来源: UWSPACE Waterloo Institutional Repository

【 摘 要 】

The behavioral properties shown by people when they makeselections between different choices will be studied. Based onempirical and logical data a mathematical axiomatic model isbuilt. D. Luce is a major contributor in this area. This thesis isbased on his works and those of his many co-authors. Threeapproaches will be considered that lead to the rank-dependentutility representation of binary gambles composed only of gains(losses) relative to a status quo. The proofs involve the theoryof functional equations which is a very powerful tool giving theprecise numerical representations.