five axioms of choice under uncertainty
Not what you're looking for? Search our solutions OR ask your own Custom question.
This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!
Please explain utility theory----five axioms of choice under uncertainty (axioms of cardinal utility)© BrainMass Inc. brainmass.com May 24, 2023, 1:29 pm ad1c9bdddf
to develop a theory of rational decision making in the face of uncertainty, it is necessary to make precise assumptions about an individual's behavior----known as axioms of cardinal utility.
Axiom 1 Completeness
For the entire set S of uncertain alternatives either
X is preferred to y: (x>y)*
Y is preferred to x: (y>x)
Individual is indifferent to x and y (x～y)
*> or < is not mathematical inequality, ...
Summarize five axioms of choice under uncertainty.