Decision Making Under Multidimensional Risk

Shaowei Ke and Mu Zhang

Papers from arXiv.org

Abstract: Choice alternatives are often multidimensional and risky. We introduce and axiomatize the \textit{structured multidimensional expected utility} representation, a unified framework that generalizes existing approaches to evaluating such alternatives. The representation uses a \textit{rooted clustered tree} to organize the joint, separate, and conditional evaluation of risk across dimensions within a common structure. We analyze the uniqueness of the representation and characterize useful special cases. We apply the representation to inequality across individuals, groups, and generations and to multisource income, characterizing the implications of bracketing for stochastic dominance and the avoidance of multidimensional risk.

Date: 2026-08
References: Add references at CitEc
Citations:

Downloads: (external link)
https://arxiv.org/pdf/2608.05043 Latest version (application/pdf)

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:arx:papers:2608.05043

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().