Temporal Resolution of Uncertainty and Dynamic Choice Theory
1978/01/01 by David M. Kreps, Evan L. Porteus · 1,918 citations
Arts and Humanities · Decision Sciences · Economics, Econometrics and Finance · Mathematics · #Artificial intelligence #Computer science #Decision-Making and Behavioral Economics #Econometrics #Economic theories and models #Economics #Mathematical economics #Mathematics #Philosophy and History of Science #Resolution (logic)
paper · doi:10.2307/1913656
published in Econometrica 46(1), 185 (Wiley)
openalex publication_date 1978/01/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31
Abstract
We consider dynamic choice behavior under conditions of uncertainty, with emphasis on the timing of the resolution of uncertainty.Choice behavior in which an individual distinguishes between lotteries based on the times at which their uncertainty resolves is axiomatized and represented, thus the result is choice behavior which cannot be represented by a single cardinal utility function on the vector of payoffs.Both descriptive and normative treatments of the problem are given and are shown to be equivalent.Various specializations are provided, including an extension of "separable" utility and representation by a single cardinal utility function.
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