J. von Neumann and O. Morgenstern, “Theory of Games and Economic Behavior,” Princeton University Press, Princeton, 1944.

has been cited by the following article:

• TITLE: Action-Independent Subjective Expected Utility without States of the World

  AUTHORS: Andreas Duus Pape

  KEYWORDS: Subjective Expected Utility; States of the World; Action Independence

  JOURNAL NAME: Theoretical Economics Letters, Vol.3 No.5B, September 24, 2013

  ABSTRACT: This paper develops an axiomatic theory of decision-making under uncertainty that has no state-space. The choice setting follows Karni [1,2]: a set of effects (outcomes), a set of actions which induce these effects, and a set of real-valued bets over effects. In Karni’s representation, a preference over action/bet pairs yields utility, which is action-dependent. In our representation, utility is action-independent. This is achieved by augmenting Karni’s choice set with lotteries over actions. Identification is achieved similarly to Anscombe-Aumann [3], in which there are objective “roulette” lotteries over subjective “horse race” lotteries.