Revisiting Savage in a conditional world
I present an axiomatization of subjective expected utility and Bayesian updating in a conditional decision problem. This result improves our understanding of the Bayesian standard from two perspectives: 1) it uses a set of axioms which are weak and intuitive; 2) it provides a formal proof to results on the relation between dynamic consistency, expected utility and Bayesian updating which have never been explicitly proved in a fully subjective framework.
Volume (Year): 20 (2002)
Issue (Month): 1 ()
|Note:||Received: December 1, 2000; revised version: February 26, 2001|
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