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Axiomatization of weighted (separable) utility
Journal article   Peer reviewed

Axiomatization of weighted (separable) utility

P. Blavatskyy
Journal of Mathematical Economics, Vol.54(October), pp.138-142
2014
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Abstract

Nontrivial decision problems typically involve a trade-off among multiple attributes of choice options. One simple way of resolving such trade-offs is to aggregate multiple attributes into one real-valued index, known as weighted or separable utility. Applications of weighted utility can be found in choice under risk (expected utility) and uncertainty (subjective expected utility), intertemporal choice (discounted utility) and welfare economics (utilitarian social welfare function). This paper presents an alternative behavioral characterization (preference axiomatization) of weighted utility. It is shown that necessary and sufficient conditions for weighted utility are completeness, continuity, bi-separable transitivity (and transitivity if none of the attributes is null, or inessential).

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Citation topics
6 Social Sciences
6.122 Economic Theory
6.122.1287 Risk Preferences
Web Of Science research areas
Economics
Mathematics, Interdisciplinary Applications
Social Sciences, Mathematical Methods
ESI research areas
Economics & Business
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