Continuity and completeness of strongly independent preorders

McCarthy, David and Mikkola, Kalle (2017): Continuity and completeness of strongly independent preorders.

Abstract

A strongly independent preorder on a possibly infinite dimensional convex set that satisfies two of the following conditions must satisfy the third: (i) the Archimedean continuity condition; (ii) mixture continuity; and (iii) comparability under the preorder is an equivalence relation. In addition, if the preorder is nontrivial (has nonempty asymmetric part) and satisfies two of the following conditions, it must satisfy the third: (i') a modest strengthening of the Archimedean condition; (ii) mixture continuity; and (iii') completeness. Applications to decision making under conditions of risk and uncertainty are provided.

• Item Type: MPRA Paper
• Language: English
• Keywords: Continuity Completeness Archimedean Strong independence Expected utility
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty

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