A generalization of the St. Petersburg paradox has led Menger to observe that utility functions must be bounded to insure existence of expected utility when probability distributions are unrestricted. It is clear that the admissible set of utility functions can be expanded as restrictions are imposed on the distribution functions under consideration. This paper provides a schema for determining the admissible utility functions for each probability distribution set defined by a minimum order requirement on the moments of the distribution.
MLA
Seo, Tae Kun, and William R. Russell. “Admissible Sets of Utility Functions in Expected Utility Maximization.” Econometrica, vol. 46, .no 1, Econometric Society, 1978, pp. 181-184, https://www.jstor.org/stable/1913655
Chicago
Seo, Tae Kun, and William R. Russell. “Admissible Sets of Utility Functions in Expected Utility Maximization.” Econometrica, 46, .no 1, (Econometric Society: 1978), 181-184. https://www.jstor.org/stable/1913655
APA
Seo, T. K., & Russell, W. R. (1978). Admissible Sets of Utility Functions in Expected Utility Maximization. Econometrica, 46(1), 181-184. https://www.jstor.org/stable/1913655
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