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Relative Uncertainty and Additively Representable Set Rankings

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  • BOSSERT, Walter
  • SLINKO, Arkadii

Abstract

This paper proposes a definition of relative uncertainty aversion for decision models under complete uncertainty. It is shown that, for a large class of decision rules characterized by a set of plausible axioms, the new criterion yields a complete ranking of those rules with respect to the relative degree of uncertainty aversion they represent. In addition, we address a combinatorial question that arises in this context, and we examine conditions for the additive representability of our rules.

Suggested Citation

  • BOSSERT, Walter & SLINKO, Arkadii, 2004. "Relative Uncertainty and Additively Representable Set Rankings," Cahiers de recherche 2004-13, Universite de Montreal, Departement de sciences economiques.
    • Handle: RePEc:mtl:montde:2004-13
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    File URL: http://hdl.handle.net/1866/528
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    References listed on IDEAS

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    Cited by:

    1. Murat Sertel & Arkadii Slinko, 2007. "Ranking committees, income streams or multisets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(2), pages 265-287, February.

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    More about this item

    Keywords

    Choice under comete uncertainty; uncertainty aversion; additive reesentability;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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