Generalized Expected Utility: A Unified Framework for Decision Making

Title: Generalized Expected Utility: A Unified Framework for Decision Making

Abstract: This research proposes a generalized expected utility (GEU) model, which allows decision makers to represent their beliefs using plausibility measures and their preferences using general utility functions. The study demonstrates that every decision-making approach can be modeled as a GEU maximizer and shows how to customize GEU by imposing specific constraints. The research highlights the significance of the approach by providing a unified framework for understanding various decision rules and their relationships.

Research Question: How can we develop a unified framework for understanding various decision-making approaches and their relationships?

Methodology: The study proposes a generalized expected utility (GEU) model, which consists of three component domains: plausibility, utility, and valuation. It introduces binary operators and a reflexive binary relation to create a structured framework. The researchers demonstrate how to customize GEU by imposing specific constraints, such as Savage's postulates.

Results: The research shows that every decision-making approach can be modeled as a GEU maximizer. It also highlights the relationship between various decision rules and the GEU framework.

Implications: The GEU model provides a unified framework for understanding various decision-making approaches and their relationships. This framework can help researchers and practitioners better understand decision-making processes and develop more effective strategies.

Keywords: Decision Making, Expected Utility, Generalized Expected Utility, Unified Framework

Link to Article: https://arxiv.org/abs/0311026v1 Authors: arXiv ID: 0311026v1