Range convexity and ambiguity averse preferences |
| |
| Authors: | Paolo Ghirardato Massimo Marinacci |
| |
| Affiliation: | (1) Division of the Humanities and Social Sciences, California Institute of Technology,Pasadena, CA 91125, USA (e-mail paolo@hss.caltech.edu) , US;(2) Dipartimento di Statistica e Matematica Applicata, Università di Torino, Piazza Arbarello 8, 10122 Torino, ITALY (e-mail massimo@econ.unito.it) , IT |
| |
| Abstract: | We show that range convexity of beliefs, a `technical' condition that appears naturally in axiomatizations of preferences in a Savage-like framework, imposes some unexpected restrictions when modelling ambiguity averse preferences. That is, when it is added to a mild condition, range convexity makes the preferences collapse to subjective expected utility as soon as they satisfy structural conditions that are typically used to characterize ambiguity aversion. Received: February 25, 2000; revised version: April 17, 2000 |
| |
| Keywords: | and Phrases: Ambiguity aversion Biseparable preferences Choquet expected Utility Maxmin expected utility Range convexity. |
| 本文献已被 SpringerLink 等数据库收录！ |
|
