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https://doi.org/10.2139/ssrn.5...
Article . 2025 . Peer-reviewed
Data sources: Crossref
https://doi.org/10.2139/ssrn.5...
Article . 2025 . Peer-reviewed
Data sources: Crossref
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Balancing Acts

Authors: Roorda, Berend; Joosten, Reinoud A.M.G.;
Abstract

Grant Kajii and Polak (2000, Journal of Economic Theory) have identified weak decomposability as the key axiom to characterise the betweenness class for acts without the assumption of probabilistic sophistication, leaving, however, a small gap between necessary and sufficient conditions. We show how the balancing perspective naturally leads to a full characterisation, for monetary acts on a finite state space. In our first theorem, we avoid some technical issues by working with the implicit notion of soundness, reflecting the proper working of a sliding balance. We sharpen the result using ratio monotonicity as the `missing' axiom, already known for lotteries as a consequence of first order stochastic dominance, but not necessarily satisfied under weak decomposability for acts. It guarantees soundness, and in fact induces a semi-strict form of monotonicity of utility in balance setpoints. Finally, we show how the balancing perspective offers an intuitive way to incorporate partial acts in the framework without reference to conditioning, replacing the notion of a null state by a nil outcome. This leads to a very straightforward betweenness axiom: the balance point of an act should be in between those of its parts. Our final theorem characterises the betweenness class for acts using this axiom of balance point betweenness, combined with a perhaps unexpected requirement of embeddability.

Country
Netherlands
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Keywords

decomposability, additive utility, partial acts, betweenness

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
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