Published November 1992 | Version Submitted
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Dynamic Consistency Implies Approximately Expected Utility Preferences

Abstract

Machina has proposed a definition of dynamic consistency which admits non-expected utility functionals. We show that even under this new definition, a dynamically consistent preference relation that is differentiable becomes arbitrarily close to an expected utility preference after the realization of a low probability event.

Additional Information

Published as Border, Kim C., and Uzi Segal. "Dynamic consistency implies approximately expected utility preferences." Journal of Economic Theory 63, no. 2 (1994): 170-188.

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Identifiers

Eprint ID
80862
Resolver ID
CaltechAUTHORS:20170828-143106635

Dates

Created
2017-08-28
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Updated
2019-10-03
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Social Science Working Papers
Series Name
Social Science Working Paper
Series Volume or Issue Number
821