A note on Bernoulli's principle and probability dominance

Marco Scarsini (1, 2)

1 GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC
2 Dipartimento di Scienze Economiche e Aziendali

The concept of beta-dominance proposed by Wrather and Yu (Ref. 1) is shown to be not equivalent to that of expected utilities, which depend on the chosen alternative and the not chosen alternative.

Keywords: Expected utility; regret; probability dominance

Domains: Economy and decision science

Marco Scarsini. A note on Bernoulli's principle and probability dominance. Journal of Optimization Theory and Applications, 1985, Vol 47, N°1, pp. 109-113. ⟨10.1007/BF00941319⟩. ⟨hal-00542266⟩