Rigotti, Luca; Shannon, Chris; Strzalecki, Tomasz - In: Econometrica 76 (2008) 5, pp. 1167-1190
We study a definition of subjective beliefs applicable to preferences that allow for the perception of ambiguity, and provide a characterization of such beliefs in terms of market behavior. Using this definition, we derive necessary and sufficient conditions for the efficiency of ex ante trade...