English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

This research note is concerned with static choices between alternative mixtures of lotteries with one common mixture component and identical mixture weights. It is shown that the common component induces a conditional preference relation on the underlying lottery space with given (unconditional) preference structure. Induced preferences of this type arise in the comparisons with which the independence axiom of expected utility theory is specifically concerned. Given a few obvious properties of the induced preferences, two basic results are obtained: first, the conditionalisation operation is an order-preserving isomorphism, and, secondly, if the conditional preferences satisfy stochastic dominance preference, they necessarily violate the independence axiom. Together, the two results preclude any possibility of postulating independence consistently for static decision making under risk. The independence axiom is thus generally invalid as a normative principle of rational risky choice.

Conditional non-expected utility preferences induced by mixture of lotteries: a note on the normative invalidity of expected utility theory