EconPapers    
Economics at your fingertips  
 

Dutch book rationality conditions for conditional preferences under ambiguity

Giulianella Coletti (), Davide Petturiti () and Barbara Vantaggi ()
Additional contact information
Giulianella Coletti: University of Perugia
Davide Petturiti: University of Perugia
Barbara Vantaggi: “La Sapienza” University of Rome

Annals of Operations Research, 2019, vol. 279, issue 1, 115-150

Abstract: Abstract We study preference relations on conditional gambles of a decision maker acting under ambiguity. Dutch book rationality conditions are provided under a linear utility scale, encoding either an optimistic or a pessimistic attitude towards uncertainty. These conditions characterize possibly incomplete preferences representable by totally alternating or monotone conditional functionals. In general, the uniqueness of the representation is not guaranteed, but it can be obtained by adding the hypothesis of existence of a conditional fair price for every conditional gamble. The given rationality conditions have a betting scheme interpretation relying on “penalty fees” for betting on strict preference comparisons.

Keywords: Conditional gambles; Preferences; Choquet expected value; Ambiguity; Conditional totally alternating capacity; Conditional totally monotone capacity; Dutch book (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10479-019-03299-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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: https://EconPapers.repec.org/RePEc:spr:annopr:v:279:y:2019:i:1:d:10.1007_s10479-019-03299-8

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-06
Handle: RePEc:spr:annopr:v:279:y:2019:i:1:d:10.1007_s10479-019-03299-8