RATIONAL DYNAMIC CHOICE AND EXPECTED UTILITY THEORY

The paper considers the normative status of the independenceand ordering principles of expected utility theory. Preferencesare defined in terms of choice and the two principles derivedfrom restrictions on choice in sequential decision problems.The results extend and clarify important contributions by Hammondand McClennen. They show that it is different requirements ondynamic choice which rationalise independence and ordering respectivelyand illuminate their relationship to consequentialism.