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 t...
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| Format: | eBook |
| Language: | English |
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Cambridge, United Kingdom ; New York, NY :
Cambridge University Press,
2022.
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| Series: | Cambridge elements. Elements in decision theory and philosophy.
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| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| 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"-- |
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| Physical Description: | 1 online resource (93 pages) : illustrations. |
| Bibliography: | Includes bibliographic references. |
| ISBN: | 9781108754750 1108754759 |
| DOI: | 10.1017/9781108754750 |