On the uses of the monotonicity and independence axioms in models of ambiguity aversion
AbstractThis paper suggests an alternative axiomatization of two canonical models of ambiguity aversion. Instead of relaxing the independence axiom to accommodate uncertainty aversion, we impose independence on constant acts only. Maxmin and variational preferences are characterized by different strengthenings of the monotonicity axiom.
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Bibliographic InfoArticle provided by Elsevier in its journal Mathematical Social Sciences.
Volume (Year): 59 (2010)
Issue (Month): 3 (May)
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Web page: http://www.elsevier.com/locate/inca/505565
Monotonicity Independence Ambiguity;
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