Abstract: In this chapter, we argue that a decision maker who does not maximize expected utility (or subjective expected utility) will necessarily violate at least one of the two rules of rational behavior in a dynamic decision context. Bydynamic decision contextwe mean choice situations where some decisions are made after the resolution of some uncertainty. The field of decision analysis (see Raiffa, 1968) deals, to a large extent, with dynamic choice situations. An implication of our arguments, therefore, is that recent generalizations of expected utility theory do not constitute a coherent normative theory for decision analysis.
Publication Year: 1992
Publication Date: 1992-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 12
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