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Sadowski, Philipp; Dillenberger, David - Duke University, Department of Economics - 2010

We study a decision maker (DM) who has preferences over sets of payoff-allocations between herself and a passive recipient, which represent second-stage choice problems. The recipient is only aware of second-stage choice of an allocation. Not choosing the normatively best allocation in the...

Persistent link: https://www.econbiz.de/10009148797

Models of Subjective Learning

Dillenberger, David; Sadowski, Philipp - Department of Economics, University of Pennsylvania - 2011

decision maker’s uncertainty about the beliefs he will hold when choosing from a menu. In the most general model of second …-order beliefs, we characterize a notion of "more preference for flexibility" via a subjective analogue of Blackwell’s (1951, 1953 … on their prior beliefs. The class of information systems that can support such a representation generalizes the notion of …

Persistent link: https://www.econbiz.de/10009366834

Optimism and Pessimism with Expected Utility

Dillenberger, David; Postlewaite, Andrew; Rozen, Kareen - Department of Economics, University of Pennsylvania - 2011

Savage (1954) provided a set of axioms on preferences over acts that were equivalent to the existence of an expected utility representation. We show that in addition to this representation, there is a continuum of other .expected utility.representations in which for any act, the probability...

Persistent link: https://www.econbiz.de/10009351308

Optimism and Pessimism with Expected Utility

Dillenberger, David; Postlewaite, Andrew; Rozen, Kareen - Cowles Foundation for Research in Economics, Yale University - 2011

Savage (1954) provided a set of axioms on preferences over acts that were equivalent to the existence of an expected utility representation. We show that in addition to this representation, there is a continuum of other "expected utility" representations in which for any act, the probability...

Persistent link: https://www.econbiz.de/10009351465

Ashamed to be selfish

Dillenberger, David; Sadowski, Philipp - In: Theoretical Economics 7 (2012) 1

We study a decision maker (DM) who has preferences over choice problems, which are sets of payoff-allocations between herself and a passive recipient. An example of such a set is the collection of possible allocations in the classic dictator game. The choice of an allocation from the set is...

Persistent link: https://www.econbiz.de/10008765197

Optimism and Pessimism with Expected Utility, Fourth Version

Dillenberger, David; Postlewaite, Andrew; Rozen, Kareen - Department of Economics, University of Pennsylvania - 2011

Maximizing subjective expected utility is the classic model of decision-making under uncertainty. Savage (1954) provides axioms on preference over acts that are equivalent to the existence of a subjective expected utility representation, and further establishes that such a representation is...

Persistent link: https://www.econbiz.de/10010721457

Cautious Expected Utility and the Certainty Effect

Cerreia-Vioglio, Simone; Dillenberger, David; Ortoleva, … - Department of Economics, University of Pennsylvania - 2014

Many violations of the Independence axiom of Expected Utility can be traced to subjects' attraction to risk-free prospects. The key axiom in this paper, Negative Certainty Independence (Dillenberger, 2010), formalizes this tendency. Our main result is a utility representation of all preferences...

Persistent link: https://www.econbiz.de/10010743117

Negative certainty independence without betweenness

Dillenberger, David; Erol, Selman - In: Economics Letters 120 (2013) 3, pp. 596-598

Dillenberger (2010) introduced the negative certainty independence (NCI) axiom, which captures the certainty effect phenomenon. He left open the question of whether there are continuous and monotone preference relations over simple lotteries that satisfy NCI but do not belong to the...

Persistent link: https://www.econbiz.de/10011041578

A theory of subjective learning

Dillenberger, David; Lleras, Juan Sebastián; Sadowski, … - In: Journal of Economic Theory 153 (2014) C, pp. 287-312

We study an individual who faces a dynamic decision problem in which the process of information arrival is unobserved by the analyst. We elicit subjective information directly from choice behavior by deriving two utility representations of preferences over menus of acts. One representation...

Persistent link: https://www.econbiz.de/10011042943

Optimism and Pessimism with Expected Utility, Fifth Version

Dillenberger, David; Postlewaite, Andrew; Rozen, Kareen - Department of Economics, University of Pennsylvania - 2013

Maximizing subjective expected utility is the classic model of decision making under uncertainty. Savage (1954) provides axioms on preference over acts that are equivalent to the existence of a subjective expected utility representation, and further establishes that such a representation is...

Persistent link: https://www.econbiz.de/10011184269