Utility of gambling when events are valued: An application of inset entropy

Marley, AA; Ng, CT; Luce, RD

Utility of gambling when events are valued: An application of inset entropy

Marley, AA Ng, CT Luce, RD

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Publisher:: Springer
Publication Type:: Journal Article
Citation:: Theory and Decision, 2009, 67 (1), pp. 23 - 63
Issue Date:: 2009-01

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Field	Value	Language
dc.contributor.author	Marley, AA	en_US
dc.contributor.author	Ng, CT	en_US
dc.contributor.author	Luce, RD	en_US
dc.date.issued	2009-01	en_US
dc.identifier.citation	Theory and Decision, 2009, 67 (1), pp. 23 - 63	en_US
dc.identifier.issn	0040-5833	en_US
dc.identifier.uri	http://hdl.handle.net/10453/17571
dc.description.abstract	The present theory leads to a set of subjective weights such that the utility of an uncertain alternative (gamble) is partitioned into three terms involving those weightsa conventional subjectively weighted utility function over pure consequences, a subjectively weighted value function over events, and a subjectively weighted function of the subjective weights. Under several assumptions, this becomes one of several standard utility representations, plus a weighted value function over events, plus an entropy term of the weights. In the finitely additive case, the latter is the Shannon entropy; in all other cases it is entropy of degree not 1. The primary mathematical tool is the theory of inset entropy.	en_US
dc.publisher	Springer	en_US
dc.relation.ispartof	Theory and Decision	en_US
dc.relation.isbasedon	10.1007/s11238-007-9065-z	en_US
dc.subject.classification	Economic Theory	en_US
dc.title	Utility of gambling when events are valued: An application of inset entropy	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	67	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	14 Economics	en_US
utslib.for	17 Psychology and Cognitive Sciences	en_US
utslib.for	22 Philosophy and Religious Studies	en_US
dc.location.activity	Salford, United Kingdom
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Strength - CENSOC - Study of Choice
utslib.copyright.status	closed_access
pubs.consider-herdc	false	en_US
pubs.issue	1	en_US
pubs.volume	67	en_US

Abstract:

The present theory leads to a set of subjective weights such that the utility of an uncertain alternative (gamble) is partitioned into three terms involving those weightsa conventional subjectively weighted utility function over pure consequences, a subjectively weighted value function over events, and a subjectively weighted function of the subjective weights. Under several assumptions, this becomes one of several standard utility representations, plus a weighted value function over events, plus an entropy term of the weights. In the finitely additive case, the latter is the Shannon entropy; in all other cases it is entropy of degree not 1. The primary mathematical tool is the theory of inset entropy.

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http://hdl.handle.net/10453/17571