Evidence Theory is a branch of mathematics that concerns the combination of empirical evidence in an individual's mind in order to construct a coherent picture of reality. Designed to deal with unexpected empirical evidence suggesting new possibilities, evidence theory has a lot in common with Shackle's idea of decision-making as a creative act. This essay investigates this connection in detail, pointing to the usefulness of evidence theory to formalise and extend Shackle's decision theory. In order to ease a proper framing of the issues involved, evidence theory is not only compared with Shackle's ideas but also with additive and sub-additive probability theories. Furthermore, the presentation of evidence theory does not refer to the original version only, but takes account of its most recent developments, too.
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Paper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number
03-2001.
Length: 21 pages Date of creation: Feb 2001 Date of revision: Handle: RePEc:icr:wpicer:03-2001
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Itzhak Gilboa & David Schmeidler, 1991.
"Updating Ambiguous Beliefs,"
Discussion Papers
924, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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