Work

A New Approach to Modeling Decision-Making under Uncertainty and Defining Subjective Probabilities

Year: 2005

Type: preprint

Abstract: This paper presents axiomatic models of decision making under uncertainty that avoid the use of a state space. The models are (a) general subjective expected utility theory with action-dependent subjective probabilities and effect-dependent utilities (the cases of effect-independent preferences and effect-independent valuations are obtained as special instances) and (b) a nonexpected utility theory involving well-defined families of action-dependent subjective probabilities on effects and utility representation that is not necessarily linear in these probabilities (a probabilistic sophistication version of this model, with action-dependent subjective probabilities is obtained as a special case)

Source: RePEc: Research Papers in Economics

Author: Edi Karni

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

Funder: National Science Foundation

Award: Foundations of Bayesian Theory: Extensions and Applications

OpenAlex ID: W1547506570

Cites: 12

Cited by: 1

Related to: 10