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DOI: 10.23952/cot.2025.22
Received February 27, 2024; Accepted May 20, 2024; Published online February 20, 2025
Abstract. In this paper we show that, given a monotone preference order that satisfies weak independence, the expected utility model (as a weak or strong representation) can be directly obtained from intuitive conditions. In particular, a weak expected utility representation can be constructed by using substitutability, while the stronger counterpart can be derived by using solvability. We provide simple examples which demonstrate that our characterization of the expected utility preferences is tight. Unlike many other expected utility characterizations, our proofs are constructive making them especially useful when testing the model.
How to Cite this Article:
K. Ozbek, Expected utility: Weak and strong, Commun. Optim. Theory 2025 (2025) 22.