Dynamic consistency, consequentialism and reduction of compound lotteries

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

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 languageEnglish
Pages (from-to)121-129
Number of pages9
JournalEconomics Letters
Volume46
Issue number2
DOIs
StatePublished - 1 Jan 1994
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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