Comment on Ellsberg's two-color experiment, portfolio inertia and ambiguity
AbstractThe final step in the proof of Proposition 1 (p.311) of Mukerji and Tallon (2003) may not hold in generalbecause $\varepsilon>0$ in the proof cannot be chosen independently of $w,z$. We point out by a counterexample that the axioms they impose are too weak for Proposition 1. We introduce a modified set of axioms and re-establish the proposition
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00175266.
Date of creation: Sep 2008
Date of revision:
Publication status: Published, International Journal of Economic Theory, 2008, 4, 3, 433-444
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00175266
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
ambiguity; bid ask spread; Ellsberg paradox;
Other versions of this item:
- Youichiro Higashi & Sujoy Mukerji & Norio Takeoka & Jean-Marc Tallon, 2008. "Comment on "Ellsberg's two-color experiment, portfolio inertia and ambiguity"," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(3), pages 433-444.
- NEP-ALL-2008-07-14 (All new papers)
- NEP-CBE-2008-07-14 (Cognitive & Behavioural Economics)
- NEP-UPT-2008-07-14 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Klibanoff & Massimo Marinacci & Sujoy Mukerji, 2002.
"A smooth model of decision making under ambiguity,"
ICER Working Papers - Applied Mathematics Series
11-2003, ICER - International Centre for Economic Research, revised Apr 2003.
- Mukerji, Sujoy & Tallon, Jean-Marc, 2003. "Ellsberg's two-color experiment, portfolio inertia and ambiguity," Journal of Mathematical Economics, Elsevier, vol. 39(3-4), pages 299-316, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.