State-Dependent Preferences
نویسنده
چکیده
منابع مشابه
On the Representation of Beliefs by Probabilities
This paper explores two axiomatic structures of subjective expected utility assuming a ...nite state-space and state-dependent, connected, topological outcome-spaces. Building on the work of Karni and Schmeidler (1981) the analytical framework includes, in addition to the preference relation on acts, introspective preferences on hypothetical lotteries that are linked to the preference relation ...
متن کاملBelief Dependent Utility
We study preferences over Savage acts where the decision maker may assign extremely low probability to some states and some of the consequences may be extreme. In particular we are interested in preferences which exhibit indi®erence among acts which di®er only in extremely unlikely states except if extreme consequences are involved. These preferences are belief dependent in that preferences ove...
متن کاملState-dependent Preferences in Prediction Markets and Prices as Aggregate Statistic
If traders in prediction markets have state-dependent preferences so that marginal utility of money varies across states, prices in a Rational Expectation equilibrium are quantile statistics of distributions that derive from both the distribution of realized signals, and the distribution of state-dependence parameters. As a result, even with a common prior and regardless of whether prices revea...
متن کامل16 State - Dependent Utility and Decision Theory
1 Technical Summary 9 2 Introduction, Retrospect and Preview 11 2.1 Retrospect: Theory 11 2.2 Retrospect: Applications and Moral Hazard 13 2.3 One-Person Games with Moral Hazard 15 2.4 Motivation and Organisation 16 3 A General Framework 18 4 Games Against Nature 20 5 Hypothetical Preferences 22 6 Games with Moral Hazard 27 7 Conditional Expected Utility 34 7.1 Representation Theorem 34 7.2 Ext...
متن کاملA theory of quantifiable beliefs
Building upon the works of Anscombe and Amuann [Ann. Math. Stat. 34 (1963) 199] and Karni and Schmeidler [An expected utility theory for state-dependent preferences. Working Paper 48-80, Foerder Institute for Economic Research, Tel Aviv University], we develop a general axiomatic theory of quantifiable beliefs—a form of probabilistic sophistication that does not preclude state-dependent prefere...
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