When is a centrally symmetric set of priors also rectangular?

Pascal Toquebeuf ()
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Pascal Toquebeuf: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes

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Abstract: This paper investigates the compatibility of the properties of rectangularity and central symmetry for the set of probabilities in the alpha-Maxmin Expected Utility model. In this framework, rectangularity is the condition that ensures dynamic consistency. We show that when a set of probabilities is centrally symmetric, this requirement forces a strict trade-off: ambiguity, defined as non-singleton beliefs, must vanish either for the marginal probabilities over partitions or for the conditional probabilities given partition elements at each stage of the filtration.

Keywords: Ambiguity; Max-min expected utility; Rectangularity; Central symmetry; Dynamic consistency (search for similar items in EconPapers)
Date: 2026-04-25
Note: View the original document on HAL open archive server: https://hal.science/hal-05602622v2
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Published in Economic Theory Bulletin, 2026, 14, ⟨10.1007/s40505-026-00311-w⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05602622

DOI: 10.1007/s40505-026-00311-w

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