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Subjective Distributions

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Author Info
Itzhak Gilboa ()
David Schmeidler ()

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Abstract

A decision maker has to choose one of several random variables whose distributions are not known. As a Bayesian, she behaves as if she knew the distributions. In this paper we suggest an axiomatic derivation of these (subjective) distributions, which is more economical than the derivations by de Finetti or Savage. Whereas the latter derive the whole joint distribution of all the available random variables, our approach derives only the marginal distributions. Correspondingly, the preference questionnaire needed in our case is less smaller. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1007/s11238-004-2596-7
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Publisher Info
Article provided by Springer in its journal Theory and Decision.

Volume (Year): 56 (2004)
Issue (Month): 4 (01)
Pages: 345-357
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:theord:v:56:y:2004:i:4:p:345-357

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Web page: http://www.springerlink.com/link.asp?id=100341

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Related research
Keywords: subjective probabilities; axiomatization; distributions;

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Cited by:
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  1. Jacob Gyntelberg & Frank Hansen, 2004. "Expected Utility Theory with “Small Worlds”," FRU Working Papers 2004/04, University of Copenhagen. Department of Economics. Finance Research Unit. [Downloadable!]
  2. Jacob Gyntelberg & Frank Hansen, 2004. "Expected utility theory with ”small worlds”," Discussion Papers 04-20, University of Copenhagen. Department of Economics, revised Jan 2005. [Downloadable!]
  3. Edi Karni, 2005. "Subjective Expected Utility Theory without States of the World," Economics Working Paper Archive 523, The Johns Hopkins University,Department of Economics. [Downloadable!]
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