A General Update Rule for Convex Capacities
AbstractA characterization of a general update rule for convex capacities, the G-updating rule, is investigated. We introduce a consistency property which bridges between unconditional and conditional preferences, and deduce an update rule for unconditional capacities. The axiomatic basis for the G-updating rule is established through consistent counterfactual acts, which take the form of trinary acts expressed in terms of G, an ordered tripartition of global states.
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Date of creation: Nov 2007
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ambiguous belief; Bayes' rule; update rule; convex capacity; Choquet ex- pected utility; conditional preference;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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