Failure of Blackwell's Theorem under Machina's generalization of expected-utility analysis without the independence axiom

Abstract Considerable evidence suggests that the independence axiom of expected-utility theory is not empirically supported. In response, Machina has generalized expected-utility theory in such a way that the independence axiom is not required. Most of the basic concepts and results of expected-utility theory still hold under Machina's generalization. However, Blackwell's Theorem, a fundamental result in information economics, fails to hold under Machina's generalization of expected-utility theory without the independence axiom.

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