Showing 1 - 10 of 488
It is commonly argued that dynamic consistency, consequentialism and non-expected utility are incompatible. The first aim of this paper is to rebut such arguments, by targeting the implicit assumption that the relevant contingencies correspond to objective resolutions of uncertainty (that is,...
Persistent link: https://www.econbiz.de/10010832945
This paper is concerned with the representation of preferences which do not satisfy the ordinary axioms for state-independent utilities.
Persistent link: https://www.econbiz.de/10005011516
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...
Persistent link: https://www.econbiz.de/10005011544
It is well-known that classical models of belief are not realistic representations of human doxastic capacity; equally, models of actions involving beliefs, such as decisions based on beliefs, or changes of beliefs, suffer from similar inaccuracies. In this paper, a general framework is...
Persistent link: https://www.econbiz.de/10005011596
This paper proposes a model of the decision-maker’s confidence in his probability judgements, in terms of an implausibility measure – a real-valued function on the set of probability functions. A decision rule is axiomatised according to which the decision-maker evaluates acts using sets of...
Persistent link: https://www.econbiz.de/10005041794
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...
Persistent link: https://www.econbiz.de/10008672464
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...
Persistent link: https://www.econbiz.de/10011147698
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...
Persistent link: https://www.econbiz.de/10011147710
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...
Persistent link: https://www.econbiz.de/10011147719
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...
Persistent link: https://www.econbiz.de/10011120239