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Justifiable preferences

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  • Lehrer, Ehud
  • Teper, Roee

Abstract

We characterize preferences over acts that can be represented by a utility function and a multiple-prior, such that an act f is preferred to act g if there is a prior under which the expected utility induced by f is higher than that induced by g. These preferences are referred to as justifiable preferences. We further introduce a generalized model of ambiguity that involves a collection of multiple-priors, namely, multiple multiple-priors and incorporate Bewley[modifier letter apostrophe]s Knightian model in justifiability: f is preferred to g if, according to at least one set of priors, f is unanimously preferred to g.

Suggested Citation

  • Lehrer, Ehud & Teper, Roee, 2011. "Justifiable preferences," Journal of Economic Theory, Elsevier, vol. 146(2), pages 762-774, March.
  • Handle: RePEc:eee:jetheo:v:146:y:2011:i:2:p:762-774
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Minardi, Stefania & Savochkin, Andrei, 2015. "Preferences with grades of indecisiveness," Journal of Economic Theory, Elsevier, vol. 155(C), pages 300-331.
    2. Riella, Gil & Teper, Roee, 2014. "Probabilistic dominance and status quo bias," Games and Economic Behavior, Elsevier, vol. 87(C), pages 288-304.
    3. Giarlotta, Alfio & Greco, Salvatore, 2013. "Necessary and possible preference structures," Journal of Mathematical Economics, Elsevier, vol. 49(2), pages 163-172.
    4. repec:the:publsh:1769 is not listed on IDEAS
    5. Roee Teper, 2016. "Who is a Bayesian?," Working Paper 5861, Department of Economics, University of Pittsburgh.
    6. Battigalli, P. & Cerreia-Vioglio, S. & Maccheroni, F. & Marinacci, M., 2016. "Analysis of information feedback and selfconfirming equilibrium," Journal of Mathematical Economics, Elsevier, vol. 66(C), pages 40-51.
    7. Pierpaolo Battigalli & Simone Cerreia-Vioglio & Fabio Maccheroni & Massimo Marinacci, 2015. "Self-Confirming Equilibrium and Model Uncertainty," American Economic Review, American Economic Association, vol. 105(2), pages 646-677, February.
    8. repec:eee:matsoc:v:91:y:2018:i:c:p:62-70 is not listed on IDEAS
    9. Hill, Brian, 2016. "Incomplete preferences and confidence," Journal of Mathematical Economics, Elsevier, vol. 65(C), pages 83-103.
    10. Pierpaolo Battigalli & Simone Cerreia-Vioglio & Fabio Maccheroni & Massimo Marinacci, 2011. "Selfconfirming Equilibrium and Uncertainty," Working Papers 428, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    11. Heller, Yuval, 2012. "Justifiable choice," Games and Economic Behavior, Elsevier, vol. 76(2), pages 375-390.
    12. S. Cerreia-Vioglio & A. Giarlotta & S. Greco & F. Maccheroni & M. Marinacci, 2016. "Rational Preference and Rationalizable Choice," Working Papers 589, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    13. Hiroki Nishimura, 2014. "The Transitive Core: Inference of Welfare from Nontransitive Preference Relations," Working Papers 201419, University of California at Riverside, Department of Economics.
    14. Faro, José Heleno, 2015. "Variational Bewley preferences," Journal of Economic Theory, Elsevier, vol. 157(C), pages 699-729.
    15. Daniele Pennesi, 2013. "Endogenous Status Quo," Carlo Alberto Notebooks 314, Collegio Carlo Alberto.
    16. Sandroni, Alvaro & Cherepavov, Vadim & Feddersen, Timothy, 2013. "Rationalization," Theoretical Economics, Econometric Society, vol. 8(3), September.
    17. Roee Teper, 2010. "Probabilistic Dominance and Status Quo Bias," Working Paper 5864, Department of Economics, University of Pittsburgh.
    18. Nishimura, Hiroki & Ok, Efe A., 2016. "Utility representation of an incomplete and nontransitive preference relation," Journal of Economic Theory, Elsevier, vol. 166(C), pages 164-185.

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