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Rational Evaluation of Actions Under Complete Uncertainty

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Abstract

This work analyzes the problem of individual choice of actions under complete uncertainty. In this context, each action consists of a set of di erent possible outcomes with no probability distribution associated with them. The work examines and de nes a class of choice procedures in which: a): the evaluation of sets (actions) is element- induced; and b): certain assumption of rationality, which is an adaptation of Sen's condition, is satis ed. Some results of characterization show that different well-known rules can be reinterpreted as particular cases within the de ned class, each of them responding to di erent attitudes towards uncertainty by the agent.

Suggested Citation

  • Ritxar Arlegi, 2001. "Rational Evaluation of Actions Under Complete Uncertainty," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0114, Departamento de Economía - Universidad Pública de Navarra.
    • Handle: RePEc:nav:ecupna:0114
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    Cited by:

    1. Amélie Vrijdags, 2013. "Min- and Max-induced rankings: an experimental study," Theory and Decision, Springer, vol. 75(2), pages 233-266, August.

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    More about this item

    Keywords

    Choice Under Complete Uncertainty. Element-induced Rules;

    JEL classification:

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

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