Combining Additive Represenations on Subsets into an Overall Representation.

H. Bleichrodt, K. Rohde, P.P. Wakker

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Many traditional conjoint representations of binary preferences are additively decomposable, or additive for short. An important generalization arises under rank-dependence, when additivity is restricted to cones with a fixed ranking of components from best to worst (comonotonicity), leading to configural weighting, rank-dependent utility, and rank- and sign-dependent utility (prospect theory). This paper provides a general result showing how additive representations on an arbitrary collection of comonotonic cones can be combined into one overall representation that applies to the union of all cones considered. The result is applied to a new paradigm for decision under uncertainty developed by duncan luce and others, which allows for violations of basic rationality properties such as the coalescing of events and other framing conditions. Through our result, a complete preference foundation of a number of new models by luce and others can be obtained. We also show how additive representations on different full product sets can be combined into a representation on the union of these different product sets.
Original languageEnglish
Pages (from-to)304-310
Number of pages7
JournalJournal of Mathematical Psychology
Volume52
DOIs
Publication statusPublished - 1 Jan 2008

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