Billot, Antoine; Vergopoulos, Vassili - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2014
This paper seeks to interpret observable behavior and departures from Savage's model of Subjective Expected Utility (SEU) in terms of knowledge and belief. It is shown that observable behavior displays sensitivity to ambiguity if and only if knowledge and belief disagree. In addition, such an...