We propose and axiomatize a model of preferences over acts such that the decision maker prefers act f to act g if and only if Eμφ (Eπu ◦ f) ≥ Eμφ (Eπu ◦ g), where E is the expectation operator, u is a vN-M utility function, φ is an increasing transformation, and μ is a subjective probability over the set Π of probability measures π that the decision maker thinks are relevant given his subjective information. A key feature of our model is that it achieves a separation between ambiguity, identi...Expand abstract
- Publisher copy:
- Copyright date:
A Smooth Model of Decision Making Under Ambiguity.
Views and Downloads
If you are the owner of this record, you can report an update to it here: Report update to this record