When is there state independence?

A-Tier
Journal: Journal of Economic Theory
Year: 2009
Volume: 144
Issue: 3
Pages: 1119-1134

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Whether a preference relation can be represented using state-independent utilities as opposed to state-dependent utilities may depend on which acts count as constant acts. This observation underlies an extension of Savage's expected utility theory to the state-dependent case that was proposed in this journal by Edi Karni. His result contains a condition requiring the existence of a set of acts which can play the role of constant acts and support a representation involving a state-independent utility function. This paper contains necessary and sufficient conditions on the preference relation for such a set of acts to exist. Results are obtained both for the Savage and the Anscombe and Aumann frameworks. Among the corollaries are representation theorems for state-dependent utilities. Relationships to Karni's work and extensions of the results are discussed.

Technical Details

RePEc Handle
repec:eee:jetheo:v:144:y:2009:i:3:p:1119-1134
Journal Field
Theory
Author Count
1
Added to Database
2026-02-02