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  • Cited by 5
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    This article has been cited by the following publications. This list is generated based on data provided by CrossRef.

    Casquilho, José Pinto 2014. Discussing an Expected Utility and Weighted Entropy Framework. Natural Science, Vol. 06, Issue. 07, p. 545.


    HIROSE, IWAO 2013. Aggregation and the Separateness of Persons. Utilitas, Vol. 25, Issue. 02, p. 182.


    Jensen, Karsten Klint 2012. UNACCEPTABLE RISKS AND THE CONTINUITY AXIOM. Economics and Philosophy, Vol. 28, Issue. 01, p. 31.


    KURTULMUS, A. FAIK 2012. Uncertainty behind the Veil of Ignorance. Utilitas, Vol. 24, Issue. 01, p. 41.


    Rabinowicz, Wlodek 2012. VALUE RELATIONS REVISITED. Economics and Philosophy, Vol. 28, Issue. 02, p. 133.


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VALUE AND UNACCEPTABLE RISK

  • GUSTAF ARRHENIUS (a1) and WLODEK RABINOWICZ (a2)
  • DOI: http://dx.doi.org/10.1017/S0266267105000556
  • Published online: 01 October 2005
Abstract

Consider a transitive value ordering of outcomes and lotteries on outcomes, which satisfies substitutivity of equivalents and obeys “continuity for easy cases,” i.e., allows compensating risks of small losses by chances of small improvements. Temkin (2001) has argued that such an ordering must also – rather counter-intuitively – allow chances of small improvements to compensate risks of huge losses. In this paper, we show that Temkin's argument is flawed but that a better proof is possible. However, it is more difficult to determine what conclusions should be drawn from this result. Contrary to what Temkin suggests, substitutivity of equivalents is a notoriously controversial principle. But even in the absence of substitutivity, the counter-intuitive conclusion is derivable from a strengthened version of continuity for easy cases. The best move, therefore, might be to question the latter principle, even in its original simple version: as we argue, continuity for easy cases gives rise to a sorites.

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Economics & Philosophy
  • ISSN: 0266-2671
  • EISSN: 1474-0028
  • URL: /core/journals/economics-and-philosophy
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