A Functional Equation Arising from Simultaneous Utility Representations

Suppose that two classes of utility representations of preferences, one additive and one increasing increments, hold simultaneously over uncertain binary alternatives (gambles). This assumption leads to the functional equation $$ f[h(x-y)+y]=f[h(x)]-f[h(y)]+f(y)qquad (kappa >xgeq ygeq 0), $$ and to the inequality h(z) ≤ z (z ∈ [0, κ[), where the functions ? and h are strictly increasing maps of the real interval [0, κ[ onto the real intervals [0, λ[ and [0, μ[, respectively, κ, λ, μ ∈]0, ∞]. We present all solutions under the additional assumption of (first-order) differentiability.