Abstract
The purpose of the present paper is to demonstrate and briefly comment on three essential theorems on the theory of cardinal utility and random choice. According to the first theorem the invariance of cardinal utility in any linear transformation implies a particular invariant form for the preference function of random choice. According to the second theorem the Postulate of cardinal isovariation 1 is a necessary consequence of the invariance of cardinal utility in any linear transformation. According to the third theorem the neo-Bernoullian index B(x), if it exists, is identical to cardinal utility u(x).
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Allais, M. (1988). Three Theorems on the Theory of Cardinal Utility and Random Choice. In: Eberlein, G.L., Berghel, H. (eds) Theory and Decision. Theory and Decision Library, vol 50. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-3895-3_10
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DOI: https://doi.org/10.1007/978-94-009-3895-3_10
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