Subjective expected utility with a spectral state space

被引:4
|
作者
Pivato, Marcus [1 ]
机构
[1] Univ Cergy Pontoise, THEMA, Cergy Pontoise, France
关键词
Subjective expected utility; Awareness; Subjective state space; Riesz space; Banach lattice; Commutative Banach algebra; REPRESENTATION; PREFERENCE; AWARENESS;
D O I
10.1007/s00199-018-01173-5
中图分类号
F [经济];
学科分类号
02 ;
摘要
An agent faces a decision under uncertainty with the following structure. There is a set A of "acts"; each will yield an unknown real-valued payoff. Linear combinations of acts are feasible; thus, A is a vector space. But there is no pre-specified set of states of nature. Instead, there is a Boolean algebra I describing information the agent could acquire. For each element of I, she has a conditional preference order on A. I show that if these conditional preferences satisfy certain axioms, then there is a unique compact Hausdorff space S such that elements of A correspond to continuous realvalued functions on S, elements of I correspond to regular closed subsets of S, and the conditional preferences have a subjective expected utility (SEU) representation given by a Borel probability measure on S and a continuous utility function. I consider two settings; in one, A has a partial order making it a Riesz space or Banach lattice, and I is the Boolean algebra of bands in A. In the other, A has a multiplication operator making it a commutative Banach algebra, and I is theBoolean algebra of regular ideals in A. Finally, given two such vector spaces A1 and A2 with SEU representations on topological spaces S1 and S2, I show that a preference-preserving homomorphism A2-.A1 corresponds to a probability-preserving continuous function S1 -> S2. I interpret this as a model of changing awareness.
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页码:249 / 313
页数:65
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