Relevance and Symmetry.

Working paper

We define a behavioral concept of relevance in the context of decision making under uncertainty. We argue that this concept provides a sensible answer to the question “What probabilistic environments do an individuals’ preferences reveal as mattering to her decisions?” under a symmetry assumption. This question has important implications for economic modeling. It is often the case that a modeler desires to restrict the probabilistic environments a decision maker considers. Without a conce...

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Authors: Klibanoff, P; Mukerji, S; Seo, K

• Publisher: Department of Economics (University of Oxford)
• Series: Discussion paper series
• Publication date: 2011-02-01
• Language: English