A Functional Equation Arising from Ranked Additive and Separable Utility
نویسندگان
چکیده
All strictly monotonic solutions of a general functional equation are determined. In a particular case, which plays an essential role in the axiomatization of rank-dependent expected utility, all nonnegative solutions are obtained without any regularity conditions. An unexpected possibility of reduction to convexity makes the present proof possible.
منابع مشابه
Separable and additive representations of binary gambles of gains
Two approaches are taken to a new utility representation of binary gambles that is called ‘‘ratio rank-dependent utility.’’ Both are based on known axiomatizations of a ranked-additive representation of consequence pairs (x, y) in binary gambles (x, C; y) of gains with C held fixed and of a separable one of the special gambles (x, C; e), where e denotes the status quo. The axiomatized version i...
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