Year: 2025
Type: preprint
Abstract: Completeness and transitivity are standard rationality conditions in economics. However, under ambiguity, decision makers sometimes violate these requirements because of the difficulty of forming accurate predictions about ambiguous events. Motivated by this, we study various ambiguity preferences that partially satisfy completeness and transitivity. Our characterization results show that completeness and a novel yet natural weakening of transitivity correspond to two opposite ways of using multiple probability distributions in mind; that is, these two axioms have dual implications at the level of cognitive processes for ambiguity.
Source: arXiv (Cornell University)
Authors: Nakamura, Kensei, Yanagita, Shohei
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4415088758
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