Generalized utility based on values of opportunity sets

Andrey V. Malishevski

Annals of Operations Research, 1998, vol. 80, issue 0, 26 pages

Abstract: This paper is concerned with an axiomatic approach to the analysis and construction ofthe utility structure that underlies the values of “opportunity sets”. A family of subsetsof a fixed universal set of alternatives is considered. These subsets are treated as opportunitysets; their (subjective) estimates by some ordinal scale are known. Also consideredis another family of subsets, “alternative bundles;” its assumed mechanism ofgenerating opportunity set values is as follows. Each opportunity set contains some bundles ofalternatives, which have their own hyper-utility values. The value of the opportunity set is the maximum “hyper-utility” over bundles that lie inside the set.We establish necessary and sufficient conditions for opportunity set values to be representableby such a mechanism, with some hyper-utility function for bundles. Particular cases are considered, including the “limit” case where the opportunity set value equals theconventional utility value of the best alternative in the set. Copyright Kluwer Academic Publishers 1998

Date: 1998
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1018955612731 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:80:y:1998:i:0:p:11-26:10.1023/a:1018955612731

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1023/A:1018955612731

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().