Ranked-weighted utilities and qualitative convolution

Citation
Aaj. Marley et Rd. Luce, Ranked-weighted utilities and qualitative convolution, J RISK UNC, 23(2), 2001, pp. 135-163
Citations number
14
Categorie Soggetti
Economics
Journal title
JOURNAL OF RISK AND UNCERTAINTY
ISSN journal
08955646 → ACNP
Volume
23
Issue
2
Year of publication
2001
Pages
135 - 163
Database
ISI
SICI code
0895-5646(200109)23:2<135:RUAQC>2.0.ZU;2-F
Abstract
For gambles-non-numerical consequences attached to uncertain chance events- analogues are proposed for the sum of independent random variables and thei r convolution. Joint receipt of gambles is the analogue of the sum of rando m variables. Because it has no unique expansion as a first-order gamble ana logous to convolution, a definition of qualitative convolution is proposed. Assuming ranked, weighted-utility representations (RWU) over gains (and, s eparately, over losses, but not mixtures of both), conditions are given for the equivalence of joint receipt, qualitative convolution, and a utility e xpression like expected value. As background, some proper-ties of RWU are d eveloped.