Hoping for the best while preparing for the worst in the face of uncertainty: a new type of incomplete preferences

Pierre Bardier, Bach Dong-Xuan and Van-Quy Nguyen

Papers from arXiv.org

Abstract: We propose and axiomatize a new model of incomplete preferences under uncertainty, which we call hope-and-prepare preferences. Act f is considered more desirable than act g when, and only when, both an optimistic evaluation, computed as the welfare level attained in a best-case scenario, and a pessimistic one, computed as the welfare level attained in a worst-case scenario, rank f above g. Our comparison criterion involves multiple priors, as best and worst cases are determined among sets of probability distributions, and is, generically, less conservative than Bewley preferences and twofold multi-prior preferences, the two ambiguity models that are closest to ours.

Date: 2024-06, Revised 2025-01
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2406.11166 Latest version (application/pdf)

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:arx:papers:2406.11166

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators (help@arxiv.org).