Money-pump arguments

• Tác giả: Johan E Gustafsson
• Ngôn ngữ: eng
• ISBN: 9781108754750 (ebook)
• Ký hiệu phân loại: 121.6 Nature of inquiry
• Thông tin xuất bản: Cambridge, United Kingdom ; New York, NY : Cambridge University Press, 2022.
• Mô tả vật lý: 1 online resource (93 pages) : , digital, PDF file(s).
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 313114
• Chủ đề: 1. Decision making; 2. Logic, Symbolic and mathematical; 3. Practical reason; 4. Revealed preference theory; 5. Utility theory

Tóm tắt

Suppose that you prefer A to B, B to C, and C to A. Your preferences violate Expected Utility Theory by being cyclic. Money-pump arguments offer a way to show that such violations are irrational. Suppose that you start with A. Then you should be willing to trade A for C and then C for B. But then, once you have B, you are offered a trade back to A for a small cost. Since you prefer A to B, you pay the small sum to trade from B to A. But now you have been turned into a money pump. You are back to the alternative you started with but with less money. This Element shows how each of the axioms of Expected Utility Theory can be defended by money-pump arguments of this kind. This title is also available as Open Access on Cambridge Core.