Generalized Expected Utility as a Universal Decision Rule

Title: Generalized Expected Utility as a Universal Decision Rule

Research Question: Can a single decision rule, called Generalized Expected Utility (GEU), represent most other decision rules?

Methodology: The researchers proposed a framework where a decision maker's beliefs are represented by plausibility measures and their tastes by general utility functions. They defined a new decision rule, GEU, and showed that it can represent various other decision rules. They also introduced the concept of ordinal representation, where the representation of tastes and beliefs can be modified while preserving their ordinal aspect.

Results: The researchers found that many decision rules, including Maximizing Choquet Expected Utility (CEU), have GEU representations. They also showed that almost all decision rules can be ordinally represented by GEU.

Implications: This study suggests that GEU could serve as a unifying framework for decision theory. It may help in understanding and comparing different decision rules, and could potentially improve the accuracy of models used in real-world decision-making scenarios.

Link to Article: https://arxiv.org/abs/0311027v1 Authors: arXiv ID: 0311027v1