 A simple and general axiomatization of average utility maximization for infinite streamsChen Li and Peter Wakker Journal of Economic Theory, 2024, vol. 216, issue C Abstract: This paper provides the most general preference axiomatization of average utility (AU) maximization over infinite sequences presently available, reaching almost complete generality. The only restriction is that all periodic sequences should be contained in the domain. Infinite sequences may designate intertemporal outcomes streams where AU models patience, welfare allocations where AU models fairness, or decisions under ambiguity where AU models complete ignorance. As a methodological contribution, this paper shows that infinite-dimensional representations can be simpler, rather than more complex, than finite-dimensional ones. Infinite dimensions provide a richness that may be convenient rather than cumbersome. In particular, (empirically problematic) continuity assumptions are not needed in our axiomatization. Continuity is optional. Keywords: Discounted utility; Fairness; Expected utility; Generalized means; Infinite populations; Cesàro mean (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:216:y:2024:i:c:s0022053124000012 DOI: 10.1016/j.jet.2024.105795 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 |
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