Average Utility Maximization: A Preference Foundation

Amit Kothiyal (), Vitalie Spinu () and Peter Wakker
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Amit Kothiyal: Max Planck Institute for Human Development, 14195 Berlin, Germany
Vitalie Spinu: Anderson School of Management, University of California, Los Angeles, Los Angeles, California 90095

Operations Research, 2014, vol. 62, issue 1, 207-218

Abstract: This paper provides necessary and sufficient preference conditions for average utility maximization over sequences of variable length. We obtain full generality by using a new algebraic technique that exploits the richness structure naturally provided by the variable length of the sequences. Thus we generalize many preceding results in the literature. For example, continuity in outcomes, a condition needed in other approaches, now is an option rather than a requirement. Applications to expected utility, decisions under ambiguity, welfare evaluations for variable population size, discounted utility, and quasilinear means in functional analysis are presented.

Keywords: utility; multiattribute; mathematics functions; decision analysis; multiple criteria (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (8)

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