A conditional expected utility model for myopic decision makersTheory and Decision (1980)
An expected utility model is formulated and axiomatized which allows the decision maker to specify his actions in the form of partial rather than complete contingency plans, and to simultaneously choose goals and actions in end-mean pairs. Both utility and probability are conditioned on selected goals and actions, and both are defined over the same set of events. For adaptive sequential decision problems this symmetrical treatment of utility and probability permits the expected utility criterion function to be directly updated in each decision period via transitional utility assessments in a manner analogous to Bayes' rule for updating probability distributions.
Citation InformationLeigh S. Tesfatsion. "A conditional expected utility model for myopic decision makers" Theory and Decision Vol. 12 Iss. 2 (1980) p. 185 - 206
Available at: http://works.bepress.com/leigh-tesfatsion/81/