Eichberger, Jurgen; Kelsey, David - In: International Economic Review 37 (1996) 3, pp. 625-40
This paper applies a proposal of M. Machina (1989) for updating nonexpected utility preferences to D. Schmeidler's (1989) nonadditive probability model. The authors discover that the updated preferences may not themselves satisfy Schmeidler's axioms. Despite this, the updates of uncertainty...