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Wikipedia reads: enter image description here

I feel that this axiom is much stronger than the usual "axiom of reduction of compound lottery" that we talk about because the Axiom 4' sufficiently imply EU (with weak ordering and continuity).

Is this Axiom 4' same as the original reduction axiom for example one mentioned in Samuelson 1952?

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  • $\begingroup$ Wikipedia says "To see how Axiom 4 [For any $N$ and $\,p\in(0,1]$, $L\preceq M$ iff $pL+(1-p)N \preceq pM+(1-p)N.$] implies Axiom 4', set $M = qL'+(1-q)N'$ in the expression in Axiom 4, and expand." $\endgroup$
    – Henry
    Commented Jul 22 at 8:05

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