You are not currently logged in.
Access your personal account or get JSTOR access through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Semiorders and a Theory of Utility Discrimination
R. Duncan Luce
Vol. 24, No. 2 (Apr., 1956), pp. 178-191
Published by: The Econometric Society
Stable URL: http://www.jstor.org/stable/1905751
Page Count: 14
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
In the theory of preferences underlying utility theory it is generally assumed that the indifference relation is transitive, and this leads to equivalence classes of indifferent elements or, equally, to indifference curves. It has been pointed out that utility is not perfectly discriminable, as such a theory necessitates. In this paper intransitive indifference relations are admitted and a class of them are axiomatized. This class is shown to be substantially equivalent to a utility theory in which there are just noticeable difference functions which state for any value of utility the change in utility so that the change is just noticeable. In the case of risk represented by a linear utility function over a mixture space, the precise form of the function is examined in detail.
Econometrica © 1956 The Econometric Society