Expected Utility without Parsimony

Antoine Billot and Vassili Vergopoulos ()
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Vassili Vergopoulos: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This paper seeks to interpret observable behavior and departures from Savage's model of Subjective Expected Utility (SEU) in terms of knowledge and belief. It is shown that observable behavior displays sensitivity to ambiguity if and only if knowledge and belief disagree. In addition, such an epistemic interpretation of ambiguity leads to dynamically consistent extensions of non-SEU preferences.

Keywords: ambiguity; state of world; knowledge; dynamic consistency; ambiguïté; état du monde; connaissance; cohérence dynamique (search for similar items in EconPapers)
Date: 2014-03
New Economics Papers: this item is included in nep-mic and nep-upt
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01021392v1
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Citations: View citations in EconPapers (1)

Published in 2014

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Related works:
Journal Article: Expected utility without parsimony (2018)
Working Paper: Expected Utility without Parsimony (2014)
Working Paper: Expected Utility without Parsimony (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01021392

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