Abstract
We use Karni and Schmeidler's (Journal of Economic Theory, 1991, 54, 401-408) formalization of the concepts of dynamic consistency, consequentialism and reduction of compound lotteries in atemporal sequential decisions to show that given dynamic consistency and any of the other two concepts, the third is equivalent to the independence axiom of choice under risk in one-stage decision problems.
Original language | English |
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Pages (from-to) | 121-129 |
Number of pages | 9 |
Journal | Economics Letters |
Volume | 46 |
Issue number | 2 |
DOIs | |
State | Published - 1 Jan 1994 |
Externally published | Yes |
ASJC Scopus subject areas
- Finance
- Economics and Econometrics