This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Weakening the Sure-Thing Principle: Decomposable Choice under Uncertainty

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Simon Grant
Atsushi Kajii
Ben Polak

Additional information is available for the following registered author(s):

Abstract

Savage motivated his Sure-Thing Principle b y arguing that, whenever an act would be preferred if an event obtains and preferred if an event did not obtain, then it should be preferred overall. The idea that it should be possible to decompose and recompose decision problems in this way has normative appeal. We show, however, does it does not require the full separability across events implicit in Savage's axiom. We formulate a weaker axiom that suffices for decomposability, and show that this implies an implicit additive representation. Our decomposability property makes local necessary conditions for for optimality, globally sufficient. Thus, it is useful in computing optimal acts. None of these results rely on probabilistic sophistication; indeed, our axiom is consistent with the Ellsberg paradox. If we assume probabilistic sophistication, however, then the axiom holds if and only if the agent's induced preferences over lotteries satisfy betweenness. Thus, the weak sure-thing principle forms part of an axiomatization of subjective betweenness theory, just as its stronger ancestor did for subjective expected utility

Download Info
To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Publisher Info
Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Theoretical Economics Paper Series with number 339.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: Oct 1997
Date of revision:
Handle: RePEc:cep:stitep:339

Contact details of provider:
Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords: Sure-thing principle; decomposable choice; Savage; subjective betweenness; Ellsberg paradox;

Statistics
Access and download statistics

Did you know? The RePEc project started in 1997. Its precursor, NetEc, dates back to 1993.

This page was last updated on 2009-6-26.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.