On the relationship between Keynes's conception of evidential weight and the Ellsberg paradox
A number of scholars have noted that Ellsberg’s seminal 1961QJE critique of the subjective expected utility model bears certain resemblances to ideas expressed in J. M. Keynes’s earlier 1921 A Treatise on Probability. Ellsberg did not mention Keynes’s work in his article, but did do so in his doctoral dissertation submitted in 1962 and recently published in 2001. This gives rise to a number of interesting questions concerning the relationship between the contributions of the two authors. The present paper, drawing in part on a conversation with Ellsberg, attempts to answer these questions. The main conclusions that emerge are that Ellsberg formulated the ideas advanced in the QJE article before having read, and thus independently of, Keynes’s work, and that, even though he later recognised the importance and originality of Keynes’s work in his PhD dissertation, he did not fully appreciate the constructive part of Keynes’s analysis. 1. Introduction The last twenty years have seen a revival of
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Truman F. Bewley, 1986. "Knightian Decision Theory: Part 1," Cowles Foundation Discussion Papers 807, Cowles Foundation for Research in Economics, Yale University.
- Quiggin, J. & Kelsey, D., 1991.
"Theories of Choice Under Ignorance and Uncertainty,"
91-17, Department of Economics, University of Birmingham.
- Kelsey, David & Quiggin, John, 1992. " Theories of Choice under Ignorance and Uncertainty," Journal of Economic Surveys, Wiley Blackwell, vol. 6(2), pages 133-53.
- Schmeidler, David, 1989.
"Subjective Probability and Expected Utility without Additivity,"
Econometric Society, vol. 57(3), pages 571-87, May.
- David Schmeidler, 1989. "Subjective Probability and Expected Utility without Additivity," Levine's Working Paper Archive 7662, David K. Levine.
- Runde, Jochen, 1994. "Keynesian Uncertainty and Liquidity Preference," Cambridge Journal of Economics, Oxford University Press, vol. 18(2), pages 129-44, April.
- David Dequech, 2000. "Fundamental Uncertainty and Ambiguity," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 41-60, Winter.
- Anand, Paul, 1991. "The Nature of Rational Choice and The Foundations of Statistics," Oxford Economic Papers, Oxford University Press, vol. 43(2), pages 199-216, April.
- Fontana, Giuseppe & Gerrard, Bill, 2004. "A Post Keynesian theory of decision making under uncertainty," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 619-637, October.
- L. R. Klein, 1951. "The Life of John Maynard Keynes," Journal of Political Economy, University of Chicago Press, vol. 59, pages 443.
- Runde, Jochen, 1990. "Keynesian Uncertainty and the Weight of Arguments," Economics and Philosophy, Cambridge University Press, vol. 6(02), pages 275-292, October.
- Anderson, Michael A. & Goldsmith, Arthur H., 1997. "Mr. Keynes' theory of investment: Do forward looking expectations and weight really matter?," Journal of Economic Psychology, Elsevier, vol. 18(5), pages 547-573, September.
- Lawson, Tony, 1985. "Uncertainty and Economic Analysis," Economic Journal, Royal Economic Society, vol. 95(380), pages 909-27, December.
- Fox, Craig R & Tversky, Amos, 1995. "Ambiguity Aversion and Comparative Ignorance," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 585-603, August.
- Kelsey, D., 1990.
"Maxmin Expected Utility and Weight of Evidence,"
216, Australian National University - Department of Economics.
- Paul Dolan & Martin Jones, 2004. "Explaining Attitudes Towards Ambiguity: An Experimental Test Of The Comparative Ignorance Hypothesis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 281-301, 08.
- Gilboa, Itzhak, 1987. "Expected utility with purely subjective non-additive probabilities," Journal of Mathematical Economics, Elsevier, vol. 16(1), pages 65-88, February.
- Daniel Ellsberg, 2000. "Risk, Ambiguity and the Savage Axioms," Levine's Working Paper Archive 7605, David K. Levine.
- Runde, Jochen, 1998. "Clarifying Frank Knight's Discussion of the Meaning of Risk and Uncertainty," Cambridge Journal of Economics, Oxford University Press, vol. 22(5), pages 539-46, September.
- Anna Carabelli, 2002. "Speculation and reasonableness: a non-Bayesian theory of rationality," Chapters, in: Post Keynesian Econometrics, Microeconomics and the Theory of the Firm, chapter 10 Edward Elgar.
- Epstein, Larry G & Wang, Tan, 1994. "Intertemporal Asset Pricing Under Knightian Uncertainty," Econometrica, Econometric Society, vol. 62(2), pages 283-322, March.
When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:28:y:2007:i:5:p:545-565. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.