CFDP 1294
Expected Utility Theory without the Completeness Axiom
Author(s):Publication Date: January 2001
Pages: 12
Abstract:
We study axiomatically the problem of obtaining an expected utility representation for a potentially incomplete preference relation over lotteries by means of a set of von Neumann-Morgenstern utility functions. It is shown that, when the prize space is a compact metric space, a preference relation admits such a multi-utility representation provided that it satisfies the standard axioms of expected utility theory. Moreover, the representing set of utilities is unique in a well-defined sense.
Keywords:
Expected utility, incomplete preferences
JEL Classification Codes: D11, D81