Economics at your fingertips  

A behavioral definition of unforeseen contingencies

Asen Kochov

Journal of Economic Theory, 2018, vol. 175, issue C, 265-290

Abstract: The paper proposes a choice-theoretic definition of an unforeseen event and a model of behavior that accommodates such events. The analysis presumes an individual who is aware of their unawareness, which explains why all unforeseen events in this paper are non-null. Relative to existing work, the main contribution is to establish a distinction between unforeseen events and events whose likelihood is ambiguous. This is achieved by adopting a dynamic choice setting.

Keywords: Dynamic choice; Unforeseen events; Ambiguity aversion (search for similar items in EconPapers)
JEL-codes: D15 D81 D84 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: 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 Dana Niculescu ().

Page updated 2019-03-13
Handle: RePEc:eee:jetheo:v:175:y:2018:i:c:p:265-290