Advanced Search
MyIDEAS: Login to save this paper or follow this series

A General Theory of Decision Making

Contents:

Author Info

  • Frank Hansen

    (Institute of Economics, University of Copenhagen)

Registered author(s):

    Abstract

    We formulate a general theory of decision making based on a lattice of observable events, and we exhibit a large class of representations called the general model. Some of the representations are equivalent to the so called standard model in which observable events are modelled by an algebra of measurable subsets of a state space, while others are not compatible with such a description. We show that the general model collapses to the standard model, if and only if an additional axiom is satisfied. We argue that this axiom is not very natural and thus assert that the standard model may not be general enough to model all relevant phenomena in economics. Using the general model we are (as opposed to Schmeidler [18]) able to rationalize Ellsberg's paradox without the introduction of non-additive measures.

    Download Info

    If 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.
    File URL: http://www.econ.ku.dk/FRU/WorkingPapers/PDF/2004/2004_02.pdf
    Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Thomas Hoffmann)
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of Copenhagen. Department of Economics. Finance Research Unit in its series FRU Working Papers with number 2004/02.

    as in new window
    Length: 16 pages
    Date of creation: Oct 2003
    Date of revision:
    Handle: RePEc:kud:kuiefr:200402

    Contact details of provider:
    Postal: Ă˜ster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
    Phone: (+45) 35 32 30 10
    Fax: +45 35 32 30 00
    Email:
    Web page: http://www.econ.ku.dk/FRU/
    More information through EDIRC

    Related research

    Keywords: theory of decision making; Ellsberg's paradox;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:kud:kuiefr:200402. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.