A New Approach to Modeling Decision-Making under Uncertainty and Defining Subjective Probabilities
AbstractThis paper presents axiomatic models of decision making under uncertainty that avoid the use of a state space. The models are (a) general subjective expected utility theory with action-dependent subjective probabilities and effect-dependent utilities (the cases of effect-independent preferences and effect-independent valuations are obtained as special instances) and (b) a nonexpected utility theory involving well-defined families of action-dependent subjective probabilities on effects and utility representation that is not necessarily linear in these probabilities (a probabilistic sophistication version of this model, with action-dependent subjective probabilities is obtained as a special case)
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Bibliographic InfoPaper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number 519.
Date of creation: May 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-16 (All new papers)
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