Year: 1995
Type: preprint
Abstract: An intuitively natural consistency condition for contingent plans is necessary and sufficient for a contingent plan to be rationalized by maximization of conditional expected utility. One alternative theory of choice under uncertainty, the weighted-utility theory developed by Chew Soo Hong (1983) does not entail that contingent plans will generally satisfy this condition. Another alternative theory, the minimax theory as formulated by Savage (1972), does entail the consistency condition (at least for singleton-valued plans). ; Earlier title: Bayes contingent plans
DOI: 10.21034/wp.558
Authors: Edward J. Green, In-Uck Park
Institution: Federal Reserve Bank of Minneapolis
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1567568693