Independent postulates for subjective expected utility

Mikko Harju (), Juuso Liesiö () and Kai Virtanen ()
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Mikko Harju: Aalto University School of Science
Juuso Liesiö: Aalto University School of Business
Kai Virtanen: Aalto University School of Science

Theory and Decision, 2024, vol. 96, issue 4, No 4, 597-606

Abstract: Abstract Although the subjective expected utility (SEU) theory is more than 60 years old, it was recently discovered by Hartmann (Econometrica 88(1):203–205, 2020, https://doi.org/10.3982/ECTA17428 ) that one of the original seven postulates is redundant, i.e., it is implied by the other six postulates. In this brief communication, we show that this redundant axiom is the only one that is implied by the other axioms, thereby establishing that the remaining six postulates form an independent axiomatic system. This result further streamlines the preference assumptions underlying the SEU theory.

Keywords: Decision analysis; Decision theory; Subjective expected utility; Subjective probability (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11238-023-09959-3

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