We show that range convexity of beliefs, a 'technical' condition that appears naturally in axiomatizations of preferences in a Savage-like framework, imposes some unexpected restrictions when modelling ambiguity averse preferences. That is, when it is added to a mild condition, range convexity makes the preferences collapse to subjective expected utility as soon as they satisfy structural conditions that are typically used to characterize ambiguity aversion.
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Paper provided by California Institute of Technology, Division of the Humanities and Social Sciences in its series Working Papers with number
1081.
Length: Date of creation: Jan 2000 Date of revision: Publication status: Published: Handle: RePEc:clt:sswopa:1081
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