Money-pump arguments
"Suppose that you prefer A to B, B to C, and A to C. 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 C, you are offered a trade back to A for a small cost. Since you prefer A to C, you pay the small sum to trade from C to A. But now you have been turned into a money pump. You are back …
Read More ↓Title Statements
- Full title :Money-pump arguments / Johan E. Gustafsson (University of York, University of Gothenburg, Institute for Futures Studies).
Summary
"Suppose that you prefer A to B, B to C, and A to C. 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 C, you are offered a trade back to A for a small cost. Since you prefer A to C, you pay the small sum to trade from C 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. The Element also defends money-pump arguments from the standard objections to this kind of approach"--.
Read More ↓Edition Statements
- Publication Date:2022
Publication Statements
- Publisher(s):Cambridge University Press
- Place of Publication:Cambridge ; New York ; Port Melbourne ; New Delhi ; Singapore
- Language:eng
- Publication Date:2022
The Physical Object
- Description:93 Seiten ; : 23 cm
Edition Identifiers
- ISBN:9781108718950, 1108718957
- oclc:on1369560598
Table of Contents
Money-pump arguments -- Acyclicity -- Completeness -- Transitivity -- Independence -- Continuity -- Against resolute choice -- Against infinite money pumps.
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