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Savage's theorem with atoms

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  • Ha-Huy, Thai
Abstract
The famous theorem of Savage is based on the richness of the states space, by assuming a continuum nature for this set. In order to fill the gap, this article considers Savage's theorem with discrete state space. The article points out the importance the existence of pair event in the existence of utility function and the subjective probability. Under the discrete states space, this can be ensured by the intuitive atom swarming condition. Applications for the establishment of an inter-temporal evaluation a la Koopman, and for the configuration under unlikely atoms of Mackenzie Mackenzie2018 are provided.

Suggested Citation

  • Ha-Huy, Thai, 2019. "Savage's theorem with atoms," MPRA Paper 96108, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96108
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    References listed on IDEAS

    as
    1. Johanna Etner & Meglena Jeleva & Jean‐Marc Tallon, 2012. "Decision Theory Under Ambiguity," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 234-270, April.
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    13. repec:hal:pseose:halshs-00643580 is not listed on IDEAS
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    Cited by:

    1. Stanca, Lorenzo, 2020. "A simplified approach to subjective expected utility," Journal of Mathematical Economics, Elsevier, vol. 87(C), pages 151-160.

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    More about this item

    Keywords

    Savage theorem; Koopman representation; expected utility function; atom swarming.;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • D10 - Microeconomics - - Household Behavior - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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