Published August 1994
| public
Journal Article
Dynamic Consistency Implies Approximately Expected Utility Preferences
- Creators
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Border, Kim C.
- Segal, Uzi
Chicago
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Abstract
Machina has proposed a definition of dynamic consistency which admits non-expected utility functionals. We show that even under this new definition a dynamically consistent preference relation that is differentiable becomes arbitrarily close to an expected utility preference after the realization of a low probability event.
Additional Information
© 1994 Academic Press. Received May 17, 1992; Revised May 20, 1993. We thank Eddie Dekel, Larry Epstein, Mark Machina, and Joe Ostroy for fruitful and stimulating discussions. We also thank an associate editor and a referee for valuable comments.Additional details
- Eprint ID
- 80934
- DOI
- 10.1006/jeth.1994.1038
- Resolver ID
- CaltechAUTHORS:20170829-155548155
- Created
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2017-08-30Created from EPrint's datestamp field
- Updated
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2021-11-15Created from EPrint's last_modified field