A Smooth Model of Decision Making under Ambiguity
نویسندگان
چکیده
منابع مشابه
A Smooth Model of Decision Making under Ambiguity by Peter Klibanoff,
We propose and characterize a model of preferences over acts such that the decision maker prefers act f to act g if and only if Eμφ(Eπu ◦ f ) ≥ Eμφ(Eπu ◦ g), where E is the expectation operator, u is a von Neumann–Morgenstern utility function, φ is an increasing transformation, and μ is a subjective probability over the set Π of probability measures π that the decision maker thinks are relevant...
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In the seminal works, Mukerji (1997) and Ghirardato (2001) explain the notion of ambiguity in terms of incompleteness of what the decision maker (DM) knows and demonstrate that such limitation may lead to a non-additive specification of DM’s beliefs. However, these theories do not relate this issue to well established formal models of knowledge. We show that translating the decision theoretic s...
متن کاملA Smooth Model of Decision Making Under Ambiguity1
We propose and axiomatize a model of preferences over acts such that the decision maker prefers act f to act g if and only if Eμφ (Eπu ◦ f) ≥ Eμφ (Eπu ◦ g), where E is the expectation operator, u is a vN-M utility function, φ is an increasing transformation, and μ is a subjective probability over the set Π of probability measures π that the decision maker thinks are relevant given his subjectiv...
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This paper presents and analyzes the results of two experiments including small decision problems. In the experiments, subjects are asked to choose one of two alternatives for a few thousand times. First experiment, where payoff structure is clearly told, is carried out to explore choice under uncertainty by examining whether expected utility theory holds or not. Second experiment, where subjec...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2003
ISSN: 1556-5068
DOI: 10.2139/ssrn.395600