On the uses of the monotonicity and independence axioms in models of ambiguity aversion
This paper suggests an alternative axiomatization of two canonical models of ambiguity aversion. Instead of relaxing the independence axiom to accommodate uncertainty aversion, we impose independence on constant acts only. Maxmin and variational preferences are characterized by different strengthenings of the monotonicity axiom.
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- Fabio Maccheroni & Massimo Marinacci & Aldo Rustichini, 2006.
"Ambiguity Aversion, Robustness, and the Variational Representation of Preferences,"
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