In a previous post,
I outlined the four von Neuman-Morgenstern axioms for preferences (completeness, transitivity, continuity and independence),
discussed my interpretation of the outcome consequentialism
that underlies sensible
interpretations of the axiom,
and finished by talking about how they imply the existence of utility functions:
Theorem (von Neumann–Morgenstern utility theorem): Assuming the VNM axioms, there exists some
linear
(weighted-average preserving) function \(u: \mathcal{O} \rightarrow \mathbb{R}\) such that:
\[o_1 \prec o_2 \Leftrightarrow u(o_1) < u(o_2)\]
These functions aren't unique: given any such function you can translate it or multiply it by a positive scalar to get another function that represents the same preference relation \(\prec\). In fact, for all intents and purposes, utility functions can be considered invariant under positive affine transformations.