Mayumi Horie () (Institute of Economic Research, Kyoto University)
Abstract
Eichberger, Grant, and Kelsey (2007) characterize the full Bayesian update rule for capacities. This paper shows that a conditional preference relation represented by the Choquet expected utility with respect to the updated capacity through the rule does not satisfy the axiom of Conditional Certainty Equivalence Consistency. A counterexample is provided and it is proved that a relaxation of the axiom maintains their results.
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Publisher Info
Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number
643.
Find related papers by JEL classification: D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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