Objective and Subjective Rationality in a Multiple Prior Model
Itzhak Gilboa,
Fabio Maccheroni,
Massimo Marinacci and
David Schmeidler
No 73, Carlo Alberto Notebooks from Collegio Carlo Alberto
Abstract:
A decision maker is characterized by two binary relations. The first reflects decisions that are rational in an “objective” sense: the decision maker can convince others that she is right in making them. The second relation models decisions that are rational in a “subjective” sense: the decision maker cannot be convinced that she is wrong in making them. We impose axioms on these relations that allow a joint representation by a single set of prior probabilities. It is “objectively rational” to choose f in the presence of g if and only if the expected utility of f is at least as high as that of g given each and every prior in the set. It is “subjectively rational” to choose f rather than g if and only if the minimal expected utility of f (relative to all priors in the set) is at least as high as that of g.
Keywords: Rationality; Multiple Priors. (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2008, Revised 2008
New Economics Papers: this item is included in nep-cbe and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)
Downloads: (external link)
https://www.carloalberto.org/wp-content/uploads/2018/11/no.73.pdf (application/pdf)
Related works:
Journal Article: Objective and Subjective Rationality in a Multiple Prior Model (2010) 
Working Paper: Objective and Subjective Rationality in a Multiple Prior Model (2010)
Working Paper: Objective and Subjective Rationality in a Multiple Prior Model (2009) 
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:cca:wpaper:73
Access Statistics for this paper
More papers in Carlo Alberto Notebooks from Collegio Carlo Alberto Contact information at EDIRC.
Bibliographic data for series maintained by Giovanni Bert ().