Guessing the beliefs
A decision maker facing Knightian uncertainty is about to tell if he prefers an act X or Y. Two agents try to guess what he is going to do. All of them have preferences that achieve a separation of utility from beliefs. The only thing that the two agents do not know is the beliefs, so they evaluate them. We give a definition of "guessing better" and deal with its implications. We study particular cases as subjective expected utility and Choquet expected utility.
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.:
- Itzhak Gilboa & Ehud Lehrer, 1989.
"The Value of Information -- An Axiomatic Approach,"
835, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Quiggin, John, 1982. "A theory of anticipated utility," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 323-343, December.
- Aumann, Robert J., 1974.
"Subjectivity and correlation in randomized strategies,"
Journal of Mathematical Economics,
Elsevier, vol. 1(1), pages 67-96, March.
- AUMANN, Robert J., . "Subjectivity and correlation in randomized strategies," CORE Discussion Papers RP 167, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- R. Aumann, 2010. "Subjectivity and Correlation in Randomized Strategies," Levine's Working Paper Archive 389, David K. Levine.
- Lehrer, Ehud, 1998. "Comparison of experts," Journal of Mathematical Economics, Elsevier, vol. 30(2), pages 207-214, September.
- Ghirardato, Paolo & Maccheroni, Fabio & Marinacci, Massimo, 2005.
"Certainty Independence and the Separation of Utility and Beliefs,"
Journal of Economic Theory,
Elsevier, vol. 120(1), pages 129-136, January.
- Paolo Ghirardato & Fabio Maccheroni & Massimo Marinacci, 2002. "Certainty Independence and the Separation of Utility and Beliefs," ICER Working Papers - Applied Mathematics Series 40-2002, ICER - International Centre for Economic Research.
- 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.
- Yaari, Menahem E, 1987. "The Dual Theory of Choice under Risk," Econometrica, Econometric Society, vol. 55(1), pages 95-115, January.
- Daniel Ellsberg, 2000. "Risk, Ambiguity and the Savage Axioms," Levine's Working Paper Archive 7605, David K. Levine.
- Chateauneuf, Alain, 1991. "On the use of capacities in modeling uncertainty aversion and risk aversion," Journal of Mathematical Economics, Elsevier, vol. 20(4), pages 343-369.
When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:45:y:2009:i:12:p:846-853. 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: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.