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Independence and Variational Bewley Preferences: A Note

Author

Listed:
  • Lorenzo Bastianello
  • José Heleno Faro
  • Flávia Teles

Abstract

This note studies some alternatives and weak versions of the Independence axiom in a decision theoretic framework under uncertainty. We propose a characterization of this axiom using a property called Weight Independence. Moreover we study how the Independence axiom is related with the Variational Bewley model of Faro [2015]. We show that Variational Bewley preferences satisfy a weaker form of independence called Independence for Constant Weights. This topic gives us the opportunity to discuss the pioneeristic contributions of David Schmeidler on the weakening of the Independence axiom. JEL Codes: D81.

Suggested Citation

  • Lorenzo Bastianello & José Heleno Faro & Flávia Teles, 2020. "Independence and Variational Bewley Preferences: A Note," Revue économique, Presses de Sciences-Po, vol. 71(2), pages 337-347.
    • Handle: RePEc:cai:recosp:reco_712_0337
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    Citations

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    Cited by:

    1. José Heleno Faro & Ana Santos, 2023. "Updating variational (Bewley) preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(1), pages 207-228, January.

    More about this item

    Keywords

    ambiguity; Knightian uncertainty; independence; incomplete preferences; variational preferences;
    All these keywords.

    JEL classification:

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

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