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How to deal with partially analyzed acts? A proposal

Author

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  • Jean-Yves Jaffray

    (LIP6 -Université Paris 6)

  • Meglena Jeleva

    (LEN-C3E et EUREQua)

Abstract

In some situations, a decision is best represented by an incompletely analyzed act: conditionally to a given event A, the consequences of the decision on sub-events are perfectly known and uncertainty becomes probabilizable, whereas the plausibility of this event itself remains vague and the decision outcome on the complementary event Ac is imprecisely known. In this framework, we study an axiomatic decision model and prove a representation theorem. Resulting decision criteria aggregate partial evaluations consisting in: i) the conditional expected utility associated with the analyzed part of the decision; and ii) the best and worst consequences of its non-analyzed part. The representation theorem is consistent with a wide variety of decision criteria which allows for expressing various degrees of knowledge on (A, Ac) and various types of attitude towards ambiguity and uncertainty. This diversity is taken into account by specific models already existing in the literature. We take advantage of that fact and propose some particular forms of our model incorporating these models as sub-models and moreover expressing various types of beliefs concerning the relative plausibility of the analyzed and the non-analyzed events ranging from probabilities to complete ignorance that include capacities

Suggested Citation

  • Jean-Yves Jaffray & Meglena Jeleva, 2004. "How to deal with partially analyzed acts? A proposal," Cahiers de la Maison des Sciences Economiques v04098, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:mse:wpsorb:v04098
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    References listed on IDEAS

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    Cited by:

    1. Johanna Etner & Meglena Jeleva & Jean‐Marc Tallon, 2012. "Decision Theory Under Ambiguity," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 234-270, April.
    2. Peter Wakker, 2011. "Jaffray’s ideas on ambiguity," Theory and Decision, Springer, vol. 71(1), pages 11-22, July.
    3. Michèle Cohen & Alain Chateauneuf & Eric Danan & Thibault Gajdos & Raphaël Giraud & Meglena Jeleva & Fabrice Philippe & Jean-Marc Tallon & Jean-Christophe Vergnaud, 2011. "Tribute to Jean-Yves Jaffray July 22, 1939 - February 26, 2009," Post-Print halshs-00664715, HAL.
    4. Emanuele Borgonovo & Veronica Cappelli & Fabio Maccheroni & Massimo Marinacci, 2016. "Model Uncertainty in Risk Analysis and Decision Theory: A Preliminary Investigation," Working Papers 592, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    5. Michèle Cohen & Alain Chateauneuf & Eric Danan & Thibault Gajdos & Raphaël Giraud & Meglena Jeleva & Fabrice Philippe & Jean-Marc Tallon & Jean-Christophe Vergnaud, 2011. "Tribute to Jean-Yves Jaffray," Theory and Decision, Springer, vol. 71(1), pages 1-10, July.

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    More about this item

    Keywords

    Decision making under uncertainty; partially analyzed decisions;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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