An Axiomatic Approach to ƒÃ-contamination
AbstractSuppose that an economic agent is (1|ƒÃ)~100% certain that uncertainty she faces is characterized by a particular probability measure, but that she has a fear that, with ƒÃ~100% chance, her conviction is completely wrong and she is left perfectly ignorant about the true measure in the present as well as in the future.This situation is often called "ƒÃ-contamination of con dence." The purpose of this paper is to provide a simple set of behavioral axioms under which the decision-maker's preference is represented by the Choquet expected utility with the ƒÃ-contamination of con dence.
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Bibliographic InfoPaper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-183.
Length: 17 pages
Date of creation: Nov 2002
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