Article ID Journal Published Year Pages File Type
972511 Mathematical Social Sciences 2015 5 Pages PDF
Abstract

•Ex ante preferences cannot elicit subjective probabilities for state-dependent utility.•We study ex post strength-of-preference as a second primitive.•A consistency condition between ex ante and ex post preferences is proposed.

When a utility function is state-dependent, ex ante preferences for acts cannot elicit unique subjective probabilities without auxiliary devices. This paper introduces ex-post strength-of-preferences for state-contingent decision outcomes. Then we prove that a consistency condition between ex ante preference and ex post strength-of-preference relations can separate utility and unique subjective state probabilities.

Related Topics
Physical Sciences and Engineering Mathematics Applied Mathematics
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