Additive - Belief - Based Preferences ∗
نویسندگان
چکیده
We introduce a new class of preferences — which we call additive-belief-based (ABB) utility — that captures a general, but still tractable, approach to belief-based utility, and that encompasses many popular models in the behavioral literature. We axiomatize a general class of ABB preferences, as well as two prominent special cases that allow utility to depend on the level of each period’s beliefs but not on changes in beliefs across periods. We also identify the intersection of ABB preferences with the class of recursive preferences and characterize attitudes towards the timing of resolution of uncertainty for such preferences. JEL codes: D80, D81
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