Qin, Weizhi and Rommeswinkel, Hendrik (2017): Conditionally Additive Utility Representations.
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Abstract
Advances in behavioral economics have made decision theoretic models increasingly complex. Utility models incorporating insights from psychology often lack additive separability, a major obstacle for decision theoretic axiomatizations. We address this challenge by providing a representation theorem for utility functions of the form $u(x,y,z)=f(x,z) + g(y,z)$. We call these representations conditionally additive as they are additively separable only when holding fixed $z$. We generalize the result to spaces with more than three dimensions. We provide axiomatizations for consumption preferences with reference points, as well as consumption preferences over time with dependence across time periods. Our results also allow us to generalize the theory of additive representations to simplexes.
Item Type:  MPRA Paper 

Original Title:  Conditionally Additive Utility Representations 
Language:  English 
Keywords:  utility; representation theorem; additive; conditionally additive; ordered space 
Subjects:  D  Microeconomics > D0  General > D01  Microeconomic Behavior: Underlying Principles D  Microeconomics > D0  General > D03  Behavioral Microeconomics: Underlying Principles D  Microeconomics > D1  Household Behavior and Family Economics > D11  Consumer Economics: Theory 
Item ID:  80912 
Depositing User:  Prof. Hendrik Rommeswinkel 
Date Deposited:  21 Aug 2017 22:15 
Last Modified:  27 Sep 2019 05:36 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/80912 
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