Subjective states: A more robust model
نویسندگان
چکیده
Following Kreps [11], Nehring [15, 16] and Dekel, Lipman and Rustichini [5], we study the demand for exibility and what it reveals about subjective uncertainty. As in the cited papers, the latter is represented by a subjective state space consisting of possible future preferences over actions to be chosen ex post. One contribution is to provide axiomatic foundations for a range of alternative hypotheses about the nature of these ex post preferences. Secondly, we establish a sense in which the subjective state space is uniquely pinned down by the agents ex ante ranking of (random) menus. For both purposes, we show that it is advantageous to assume that the agent ranks random menus, and to think of ex post upper contour sets rather than ex post preferences. Finally, we demonstrate the tractability of our representation by showing that it can model the two comparative notions 2 desires more exibility than 1and 2 is more averse to exibility-risk than is 1. Dept. of Economics, U. Rochester, Rochester, NY 14627, [email protected] and [email protected]. Epstein gratefully acknowledges the nancial support of the NSF (award SES-0611456). We are grateful to Bart Lipman for useful discussions, to Klaus Nehring for informing us about some of his unpublished work, and especially to Massimo Marinacci for showing us how to exploit Choquets Theorem.
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ورودعنوان ژورنال:
- Games and Economic Behavior
دوره 67 شماره
صفحات -
تاریخ انتشار 2009