A theory of stochastic choice under uncertainty

Edi Karni and Zvi Safra

Journal of Mathematical Economics, 2016, vol. 63, issue C, 164-173

Abstract: In this paper we propose a characterization of stochastic choice under risk and under uncertainty. We presume that decision makers’ actual choices are governed by randomly selected states of mind, and study the representation of decision makers’ perceptions of the stochastic process underlying the selection of their state of mind. The connections of this work to the literatures on random choice, choice behavior when preference are incomplete; choice of menus; and grades of indecisiveness are also discussed.

Keywords: Random choice; Decision making under uncertainty; Incomplete preferences; Preferences over menus; Subjective state space (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:63:y:2016:i:c:p:164-173

DOI: 10.1016/j.jmateco.2016.02.001

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