Expected Utility without Parsimony

Antoine Billot and Vassili Vergopoulos ()
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Vassili Vergopoulos: Centre d'Economie de la Sorbonne - Paris School of Economics, https://centredeconomiesorbonne.univ-paris1.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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 the world; knowledge; dynamic consistency (search for similar items in EconPapers)
JEL-codes: D81 D83 D90 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2014-03
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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ftp://mse.univ-paris1.fr/pub/mse/CES2014/14048.pdf (application/pdf)

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:mse:cesdoc:14048

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