Stochastic models for risky choices: A comparison of different axiomatizations

John K. Dagsvik

Photo: Journal of Mathematical Economics

Published in:

Journal of Mathematical Economics 60 pp. 81-88

doi:10.1016/j.jmateco.2015.06.013

Link to the paper

Abstract:

For a long time researchers have recognized the need for applying stochastic models for analyzing data generated from agents’ choice under risk. This paper compares and discusses recent axiomatizations of stochastic models for risky choice given by Blavatskyy (2008) and Dagsvik (2008). We show that some of Blavatskyy’s axioms are equivalent to some of Dagsvik’s axioms. We also propose new axioms and derive their implications. Specifically, we show that some of the results of Dagsvik (2008) can be derived under weaker axioms than those he proposed originally.

Published Feb. 25, 2016 1:11 PM - Last modified June 28, 2019 12:42 PM