Money-Pump Arguments

Suppose that you prefer A to B, B to C, and C to A. Your preferences violate Expected Utility Theory by being cyclic. Money-pump arguments offer a way to show that such violations are irrational. Suppose that you start with A. Then you should be willing to trade A for C and then C for B. But then, once you have B, you are offered a trade back to A for a small cost. Since you prefer A to B, you pay the small sum to trade from B to A. But now you have been turned into a money pump. You are back to the alternative you started with but with less money. This Element shows how each of the axioms of Expected Utility Theory can be defended by money-pump arguments of this kind. This title is also available as Open Access on Cambridge Core.

List of contents

1. Money-pump arguments; 2. Acyclicity; 3. Completeness; 4. Transitivity; 5. Independence; 6. Continuity; 7. Against resolute choice; 8. Against infinite money pumps.

Summary

This Element shows how Expected Utility Theory can be defended by money-pump arguments. The Element also defends money-pump arguments from the standard objections to this kind of approach. This title is also available as Open Access on Cambridge Core.

Product details

• Authors: Johan E. Gustafsson, Johan E. (University of York) Gustafsson
• Publisher: Cambridge University Press ELT
• Languages: English
• Product format: Paperback / Softback
• Released: 31.07.2022
• EAN: 9781108718950
• ISBN: 978-1-108-71895-0
• No. of pages: 100
• Series: Elements in Decision Theory and Philosophy
• Subjects: Natural sciences, medicine, IT, technology > Natural sciences (general); Non-fiction book > Philosophy, religion > Philosophy: general, reference works; SCIENCE / Philosophy & Social Aspects, Philosophy of Science