Decision Analysis Working Paper Abstract
Archive
WP030009
|
Title: The Shape of Incomplete Preferences
Authors: Robert
F. Nau,
Duke University
Date: January 2003
Status: working paper
The emergence of robustness as an important consideration in Bayesian statistical
models has led to a renewed interest in normative models of incomplete
preference orders represented by indeterminate (set-valued) probabilities
and utilities. This paper presents a simple axiomatization of incomplete
preferences and characterizes the shape of their representing sets of probabilities
and utilities. Deletion of the completeness assumption from the axiom
system of Anscombe and Aumann yields preferences represented by a convex
set of state-dependent expected utilities, of which at least one must be
a probability/utility pair. A strengthening of the state-independence
axiom is needed to obtain representation purely in terms of probability/utility
pairs.
Click here
to visit Bob Nau's web site to download this paper.
Back to the Decision Analysis Working Paper
Index
