 Scalarization methods and expected multi-utility representationsÖzgür Evren Journal of Economic Theory, 2014, vol. 151, issue C, 30-63 Abstract: I characterize the class of (possibly incomplete) preference relations over lotteries which can be represented by a compact set of (continuous) expected utility functions that preserve both indifferences and strict preferences. This finding contrasts with the representation theorem of Dubra, Maccheroni and Ok [16] which typically delivers some functions which do not respect strict preferences. For a preference relation of the sort that I consider in this paper, my representation theorem reduces the problem of recovering the associated choice correspondence over convex sets of lotteries to a scalar-valued, parametric optimization exercise. By utilizing this scalarization method, I also provide characterizations of some solution concepts. Most notably, I show that in an otherwise standard game with incomplete preferences, the collection of pure strategy equilibria that one can find using this scalarization method corresponds to a refinement of the notion of Nash equilibrium that requires the (deterministic) action of each player be not worse than any mixed strategy that she can follow, given others' actions. Keywords: Incomplete preferences; Expected utility; Nash equilibrium; Nonbinary choice; Maxmin under risk; Pareto efficiency (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:151:y:2014:i:c:p:30-63 DOI: 10.1016/j.jet.2014.02.003 Access Statistics for this article Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell More articles in Journal of Economic Theory from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.