A unified derivation of classical subjective expected utility models through cardinal utility

Classical foundations of expected utility were provided by Ramsey, de Finet ti, von Neumann and Morgenstern, Anscombe and Aumann, and others. These fou ndations describe preference conditions to capture the empirical content of expected utility. The assumed preference conditions, however, vary among t he models and a unifying idea is not readily transparent. Providing such a unifying idea is the purpose of this paper. The mentioned derivations have in common that a cardinal utility index for outcomes, independent of the st ates and probabilities, can be derived. Characterizing that feature provide s the unifying idea of the mentioned models. (C) 1999 Elsevier Science S.A. All rights reserved.