Solutions to Three Functional Equations Arising from Different Ways of Measuring Utility

✍ Scribed by János Aczél; R.Duncan Luce; Gyula Maksa

• Publisher: Elsevier Science
• Year: 1996
• Tongue: English
• Weight: 216 KB
• Volume: 204
• Category: Article
• ISSN: 0022-247X
• DOI: 10.1006/jmaa.1996.0448

✦ Synopsis

Utility of gains losses can be measured in four distinct ways: riskless vs risky Ž . choices and gains losses alone vs the gain-loss trade-off. Conditions forcing these measures all to be the same lead to functional equations, three of which are y1 w x y 1 w x