A Non-Bayesian Approach to Decision-Making with Irreversibilities
AbstractIn this paper, we reconsider the irreversibility theory in an non-Bayesian framework. First, we propose three definitions in order to make the difference between the effects of the irreversibilities and of the information which were mixed in the standard definition of the "irreversibility effect" proposed dy Arrow-Fisher and Henry. The agent faces total uncertainty and uses the Max-min criterion. We consider two types of model. The former deals with decisional irreversibilities while the latter considers also accumulation process. Our results are similar to the ones of the literature. Yet, we notice imporatnt quantitative differences. The max-min criterion does not lead necessarily to more flexible decision than Expected Utility and there is no probability distributions that could produce the Max-min decisions.
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 1797.
Date of creation: 01 Aug 2000
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