A characterization of Brandenburger–Friedenberg–Keisler’s assumption
Byung Soo Lee
Economics Letters, 2016, vol. 145, issue C, 60-64
Brandenburger et al.’s (2008) preference-based definition of assumption has two requirements: nontriviality and strict determination. We show that a decision maker’s preferences satisfy strict determination (on a given event) if and only if her unconditional preferences are equivalent to a lexicographic evaluation of her conditional preferences. An immediate application of this result yields a characterization of all lexicographic probability systems (LPS’s)—similar to the characterization in Brandenburger et al.(2008) for a strict subset of LPS’s—under which an event is assumed.
Keywords: Strict determination; Assumption; Lexicographic probability (search for similar items in EconPapers)
JEL-codes: C72 D80 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:145:y:2016:i:c:p:60-64
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