A Simple Axiomatization of Neo-Additive Choquet Expected Utility Theory on a Finite State Space

Takao Asano (), Hiroyuki Kojima () and Kaname Miyagishima
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Takao Asano: Okayama University
Hiroyuki Kojima: Teikyo University

No 1080, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: By assuming that a state space is finite, we provide an easy-to-understand axiomatization of neo-additive Choquet expected utility theory (CEU) following Chateauneuf et al. (2007). Our axiomatization based on Moebius inversions sheds new light on their usefulness for our understanding of the behaviors of decision makers and enables us to provide new interpretations for neo-additive CEU from uncertainty aversion (uncertainty lovingness) and certainty equivalent, respectively. Furthermore, our approach enables us to understand the relationship between existing contributions by Chateauneuf et al. (2007), Kajii et al. (2009), and Asano and Kojima (2022) in a clearer and more unified way.

Keywords: Neo-additive Choquet Expected Utility; Moebius Inversion (search for similar items in EconPapers)
JEL-codes: C71 D81 D90 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2022-07
New Economics Papers: this item is included in nep-mic and nep-upt
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