Monotonicity (Utility Theory)

utility-theory

Definition

Monotonicity (Utility Theory)

Suppose two lotteries have the same possible outcomes $A$ and $B$. If an agent prefers $A$ to $B$, then the agent must prefer precisely the lottery that has a higher probability for outcome $A$:

$$A\succ B⟹(p>q⟺[p,A;1-p,B]\succ [q,A;1-q,B])$$