AXIOMATIC DERIVATION OF SUBJECTIVE-PROBABILITY, UTILITY, AND EVALUATION FUNCTIONS

Subjective expected utility maximization is derived from four axioms, using an argument based on the separating hyperplane theorem. It is also shown that the first three of these axioms imply a more general maximization formula, involving an evaluation function, which can still serve as a basis for decision analysis. © 1979 D. Reidel Publishing Co.