For binary gambles composed only of gains (losses) relative to a status quo, the rank-dependent utility model with a representation that is dense in intervals is shown to be equivalent to ten elementary properties plus event commutativity and a gamble partition assumption. The proof reduces to a (difficult) functional equation that has been solved by Aczel, Maksa, and Pales (in press). (C) 2001 Elsevier Science (USA).
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Univ Paris 01, IPAG, F-75231 Paris 05, France
Univ Paris 01, Paris Sch Econ, F-75231 Paris 05, FranceUniv Paris 01, IPAG, F-75231 Paris 05, France
Chateauneuf, Alain
Lakhnati, Ghizlane
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IBN Zohr Univ, Natl Sch Appl Sci, BP 1136, Agadir 80000, MoroccoUniv Paris 01, IPAG, F-75231 Paris 05, France
Lakhnati, Ghizlane
Langlais, Eric
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CNRS, EconomiX UMR 7235, 200 Ave Republ, F-92001 Nanterre, France
Paris Ouest Nanterre, 200 Ave Republ, F-92001 Nanterre, FranceUniv Paris 01, IPAG, F-75231 Paris 05, France
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Univ Paris Est, IFSTTAR, F-77447 Champs Sur Marne 2, Marne La Vallee, FranceUniv Paris Est, IFSTTAR, F-77447 Champs Sur Marne 2, Marne La Vallee, France
de Lapparent, Matthieu
Ben-Akiva, Moshe
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MIT, Dept Civil & Environm Engn, Cambridge, MA 02139 USAUniv Paris Est, IFSTTAR, F-77447 Champs Sur Marne 2, Marne La Vallee, France