Imprecision as an account of violations of independence and betweenness
In an earlier paper we put forward a model of imprecise preferences which accounted for various forms of preference reversal. In this paper we show that the same model can also explain the best-known violations of expected utility theory's axioms of independence and betweenness. It appears that a simple model of imprecise preferences can account for a broader range of anomalies than many of the more elaborate alternative theories developed to date.
Volume (Year): 80 (2011)
Issue (Month): 3 ()
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Open Access Publications from Kiel Institute for the World Economy
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