CEU Preferences and Dynamic Consistency
This paper investigates the dynamic consistency of CEU preferences. A decision maker is faced with an information structure represented by a fixed filtration. If beliefs are represented by a convex capacity, we show that a necessary and sufficient condition for dynamic consistency is that beliefs be additive over the final stage in the filtration.
|Date of creation:||24 Nov 2004|
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|Note:||Research supported by ESRC grants no. R000222597 and RES-000-22-0650. We would like to|
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