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Title:Multiple Periods Destroy the Axiomatic Base of Expected Utility Theory and its Standard Generalisations PDF Logo
Authors:Pope, Robin
Issue Date:2006
Series/Report no.:Bonn econ discussion papers 2006,30
Abstract:It is here shown that the extension of expected utility theory to multiple periods destroys the axiomatic base by introducing timing contradictions in what the chooser knows at a single time point. It is shown that some of these timing contradictions remain even if, as Samuelson (1952) proposed, no segment of the outcome space (to which utility attaches) commences before all risk is passed.
Subjects:expected utility theory
rank dependent theories
axioms
single period
multiple period
timing contradictions
degree of knowledge ahead
JEL:D90
D81
Document Type:Working Paper
Appears in Collections:Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn

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