Some Functional Equations Connected with the Utility of Gains and Losses

[摘要] The behavioral properties shown by people when they makeselections between different choices will be studied. Based onempirical and logical data a mathematical axiomatic model isbuilt. D. Luce is a major contributor in this area. This thesis isbased on his works and those of his many co-authors. Threeapproaches will be considered that lead to the rank-dependentutility representation of binary gambles composed only of gains(losses) relative to a status quo. The proofs involve the theoryof functional equations which is a very powerful tool giving theprecise numerical representations.

[发布机构] University of Waterloo

[效力级别] Utility

[关键词] Mathematics;Utility;functional equations;binary gambles;RDU representation