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Preference Aggregation under Uncertainty: Savage vs. Pareto
Paper Number: 1184
Date: 11/01/2003
Abstract:
Following Mongin [12, 13], we study social aggregation of subjective expected utility preferences in a Savage framework. We argue that each of Savage's P3 and P4 and incompatible with the Strong Pareto property. A representation theorem for social preferences satisfying Pareto indifference and conforming to the state-dependent expected utility model is provided.Keywords: Harsanyi's Theorem, preference aggregation, subjective expected utility, Savage's axioms.
Paper Length: 11 pages
Paper: wp1184.pdf