For binary gambles composed only of gains (losses) relative to a status quo, the rank-dependent utility model with a representation that is dense in intervals is shown to be equivalent to ten elementary properties plus event commutativity and a gamble partition assumption. The proof reduces to a (difficult) functional equation that has been solved by Aczel, Maksa, and Pales (in press). (C) 2001 Elsevier Science (USA).
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[2]
[Anonymous], 1966, Lectures on functional equations and their applications