QED Working Paper Number
1528

This paper utilizes a Banach-type fixed point theorem in a functorial context to develop

Universal Choice Spaces for addressing decision problems, focusing on expected utility and

preference uncertainty. This generates an infinite sequence of optimal selection problems

involving probability measures on utility sets. Each solution at a given stage addresses

the preference ambiguity from the previous stage, enabling optimal choices at that level.

The Universal Choice Space is characterized as a collection of finite-dimensional vectors of

probability distributions, with the mth component being an arbitrary probability measure

relevant to the mth stage of the problem. The space is derived as the canonical fixed point

of a suitable endofunctor on an enriched category and simultaneously as the colimit of the

sequence of iterations of this functor, starting from a suitable object.

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