The betweenness axiom asserts that gambles that have prizes about which people are indifferent are interchangeable.

Question

Quizplus · Accepted Answer

The betweenness axiom, in the context of expected utility theory, asserts that if a decision-maker prefers gamble A over gamble B and prefers gamble B over gamble C, then the decision-maker should prefer a gamble that is a probability mix of A and C over gamble B if the mix makes the decision-maker indifferent between A and C. It does not specifically address the interchangeability of prizes about which people are indifferent.

The Betweenness Axiom Asserts That Gambles That Have Prizes About