Order indifference and rank-dependent probabilities

This paper presents a new axiomatization of the anticipated utility (also known as the rank-dependent) model for decision making under uncertainty. This axiomatization is based on the analysis of two-stage lotteries with the compound independence axiom but without the reduction of compound lotteries axiom. The major new axiom assumes indifference to the order at which uncertainty is resolved in some simple two-stage lotteries.