Conditional Expected Utility
Article [Version of Record]
Is part ofCahier de recherche ; no. 2013-02.
Publisher(s)Université de Montréal. Département de sciences économiques.
Let 'epsilon' be a class of event. Conditionally Expected Utility decision makers are decision makers whose conditional preferences ≿E, E є 'epsilon', satisfy the axioms of Subjective Expected Utility theory (SEU). We extend the notion of unconditional preference that is conditionally EU to unconditional preferences that are not necessarily SEU. We give a representation theorem for a class of such preferences, and show that they are Invariant Bi-separable in the sense of Ghirardato et al.. Then, we consider the special case where the unconditional preference is itself SEU, and compare our results with those of Fishburn .