A Non-Bayesian Approach to Decision-Making with Irreversibilities

Tania Bouglet and Jean-Christophe Vergnaud
Additional contact information
Tania Bouglet: Universite de Paris 1

No 1797, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: In this paper, we reconsider the irreversibility theory in an non-Bayesian framework. First, we propose three definitions in order to make the difference between the effects of the irreversibilities and of the information which were mixed in the standard definition of the "irreversibility effect" proposed dy Arrow-Fisher and Henry. The agent faces total uncertainty and uses the Max-min criterion. We consider two types of model. The former deals with decisional irreversibilities while the latter considers also accumulation process. Our results are similar to the ones of the literature. Yet, we notice imporatnt quantitative differences. The max-min criterion does not lead necessarily to more flexible decision than Expected Utility and there is no probability distributions that could produce the Max-min decisions.

Date: 2000-08-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://fmwww.bc.edu/RePEc/es2000/1797.pdf main text (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:ecm:wc2000:1797

Access Statistics for this paper

More papers in Econometric Society World Congress 2000 Contributed Papers from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().