SSRN Author: Vassili VergopoulosVassili Vergopoulos SSRN Content
http://www.ssrn.com/author=2967005
http://www.ssrn.com/rss/en-usSat, 28 Apr 2018 01:08:52 GMTeditor@ssrn.com (Editor)Sat, 28 Apr 2018 01:08:52 GMTwebmaster@ssrn.com (WebMaster)SSRN RSS Generator 1.0New: Subjective Expected Utility with Topological ConstraintsIn many decisions under uncertainty, there are technological constraints on the acts an agent can perform and on the events she can observe. To model this, we assume that the set S of possible states of the world and the set X of possible outcomes each have a topological structure. The only feasible acts are continuous functions from S to X, and the only observable events are regular open subsets of S. We axiomatically characterize Subjective Expected Utility (SEU) representations of conditional preferences over acts, involving a continuous utility function on X (unique up to positive affine transformations), and a unique Borel probability measure on S, along with an auxiliary apparatus called a "liminal structure", which describes the agent’s imperfect perception of events. We also give other SEU representations, which use residual probability charges or compactifications of the state space.
http://www.ssrn.com/abstract=3157647
http://www.ssrn.com/1686904.htmlFri, 27 Apr 2018 05:07:19 GMTNew: Subjective Expected Utility with Imperfect PerceptionIn many decisions under uncertainty, there are constraints on both the available information and the feasible actions. The agent can only make certain observations of the state space, and she cannot make them with perfect accuracy — she has imperfect perception. Likewise, she can only perform acts that transform states continuously into outcomes, and perhaps satisfy other regularity conditions. To incorporate such constraints, we modify the Savage decision model by endowing the state space S and outcome space X with topological structures. We axiomatically characterize a Subjective Expected Utility (SEU) representation of conditional preferences, involving a continuous utility function on X (unique up to positive affine transformations), and a unique probability measure on a Boolean algebra B of regular open subsets of S. We also obtain SEU representations involving a Borel measure on the Stone space of B — a “subjective” state space encoding the agent’s imperfect perception.
http://www.ssrn.com/abstract=3157729
http://www.ssrn.com/1686755.htmlThu, 26 Apr 2018 11:57:59 GMT