On the determination of subjective probability by choices
The paper explores the uniqueness properties of the subjective probabilities in two axiomatizations of state-dependent preferences. Karni, Schmeidler, and Vind's (KSV 1983) system depends on selecting an arbitrary auxiliary probability, and as such, does not guarantee the uniqueness of the derived subjective probability. However, an axiom system initially designed by Karni and Schmeidler (KS 1981) and further elaborated upon here does guarantee the desired uniqueness as well as a useful property of "stability" of the derived solution. When the preference relation displays state-independence, even the KS probabilities may not agree with those derived from the classic Anscombe-Aumann (AA 1963) theorem. However, we claim that, in this case, the KS rather than the AA probabilities are the appropriate representation of the agent's beliefs.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1997|
|Date of revision:|
|Contact details of provider:|| Postal: 33, boulevard du port - 95011 Cergy-Pontoise Cedex|
Phone: 33 1 34 25 60 63
Fax: 33 1 34 25 62 33
Web page: http://thema.u-cergy.fr
More information through EDIRC
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.:
- Mark J. Schervish & Teddy Seidenfeld & Joseph B. Kadane, 1991. "Shared Preferences and State-Dependent Utilities," Management Science, INFORMS, vol. 37(12), pages 1575-1589, December.
- Karni, E. & Schmeidler, D., 1991.
"On the Uniqueness of Subjective Probabilities,"
1-92, Tel Aviv - the Sackler Institute of Economic Studies.
- Karni, Edi, 1992. "Subjective Probabilities and Utility with Even-Dependent Preferences," Journal of Risk and Uncertainty, Springer, vol. 5(2), pages 107-25, May.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279.
- Nau, Robert F, 1995. "Coherent Decision Analysis with Inseparable Probabilities and Utilities," Journal of Risk and Uncertainty, Springer, vol. 10(1), pages 71-91, January.
When requesting a correction, please mention this item's handle: RePEc:ema:worpap:97-37. 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: (Stefania Marcassa)
If references are entirely missing, you can add them using this form.