Economics at your fingertips  

The [alpha]-MEU model: A comment

Jürgen Eichberger, Simon Grant (), David Kelsey and Gleb A. Koshevoy

Journal of Economic Theory, 2011, vol. 146, issue 4, 1684-1698

Abstract: In Ghirardato et al. (2004) [7], Ghirardato, Macheroni and Marinacci propose a method for distinguishing between perceived ambiguity and the decision-maker[modifier letter apostrophe]s reaction to it. They study a general class of preferences which they refer to as invariant biseparable. This class includes CEU and MEU. They axiomatize a subclass of [alpha]-MEU preferences. If attention is restricted to finite state spaces, we show that any [alpha]-MEU preference relation, satisfies GMM[modifier letter apostrophe]s axioms if and only if [alpha]=0 or 1, that is, the preferences must be either maxmin or maxmax. We show by example that these axioms may be satisfied when the state space is [0,1].

Keywords: Ambiguity; Multiple; priors; Invariant; biseparable; Clarke; derivative; Ambiguity-preference (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-09-08
Handle: RePEc:eee:jetheo:v:146:y:2011:i:4:p:1684-1698