TY - JOUR
T1 - Combining Additive Represenations on Subsets into an Overall Representation.
AU - Bleichrodt, H.
AU - Rohde, K.
AU - Wakker, P.P.
PY - 2008/1/1
Y1 - 2008/1/1
N2 - 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.
AB - 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.
U2 - 10.1016/j.jmp.2008.04.005
DO - 10.1016/j.jmp.2008.04.005
M3 - Article
SN - 0022-2496
VL - 52
SP - 304
EP - 310
JO - Journal of Mathematical Psychology
JF - Journal of Mathematical Psychology
ER -