A theory of incomplete preferences under uncertainty is proposed, according to which a decision maker’s preferences are indeterminate if and only if her confidence in the relevant beliefs does not match up to the stakes involved in the decision. The author uses the model of confidence in...

The authors provide possibility results on the aggregation of beliefs and tastes for Monotone, Bernoullian and Archimedian preferences of Cerreia-Vioglio, Ghirardato, Maccheroni, Marinacci, and Siniscalchi (2011). The authors propose a new axiom, Unambiguous Pareto Dominance, which requires that...

One apparent reason for deferring a decision – abstaining from choosing, leaving the decision open to be taken by someone else, one’s later self, or nature – is for lack of sufficient confidence in the relevant beliefs. This paper develops an axiomatic theory of decision in situations...

There has been a recent surge of interest among economists in developing models of doxastic states that can account for some aspects of human cognitive limitations that are ignored by standard formal models, such as awareness. Epistemologists purport to have a principled reason for ignoring the...

This paper studies portfolio allocation in the international financial market when investors exhibit ambiguity aversion towards assets issued in foreign locations. Entrepreneurs located in each country have access to a risky technology and want to attract capital. The authors characterize...

Author's abstract: A theory of when to defer a decision is proposed, according to which a decision maker defers if and only if his confidence in the relevant beliefs does not match up to the stakes involved in the decision. It uses the model of confidence in beliefs and the notion of stakes...

Author's abstract. In a situation of decision under uncertainty, a decision maker wishes to choose according to the maxmin expected utility rule, and he can observe the preferences of a set of experts who all share his utility function and all use the maxmin EU rule. This paper considers rules...

This paper is concerned with the representation of preferences which do not satisfy the ordinary axioms for state-independent utilities.

Zeno's "dichotomy" paradox of the runner and the sorites paradox exhibit certain interesting similarities. Both of them involve a long series of steps, each of which seems legitimate, but which, taken together, apparently lead to an unacceptable conclusion. In this article, a particular...

The phenomenon of adaptive preferences – sometimes also known under the name of sour grapes – has long caused a stir in Social Theory. In this paper, the precise problem posed by adaptive preferences, as seen from the point of view of a theoretician who intends to model or understand the...