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Stochastic Dynamic Utilities and Inter-Temporal Preferences

2018/03/14 by Maggis, Marco, Maran, Andrea · 1 citation
#FOS: Economics and business #FOS: Mathematics #General Economics (econ.GN) #Probability (math.PR)

paper · doi:10.48550/arxiv.1803.05244

Abstract

We propose an axiomatic approach which economically underpins the representation of dynamic preferences in terms of a stochastic utility function, sensitive to the information available to the decision maker. Our construction is iterative and based on inter-temporal preference relations, whose characterization is inpired by the original intuition given by Debreu's State Dependent Utilities (1960).

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