Decision Under Normative Uncertainty

Franz Dietrich and Brian Jabarian ()
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Brian Jabarian: Université Paris 1 Paris School of Economics, https://cv.archives-ouvertes.fr/brian-jabarian

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: While ordinary decision theory focuses on empirical uncertainty, real decision-makers also normative uncertainty: uncertainty about value itself. Normative uncertainty is comparable to (Harsanyian or Rawlsian) uncertainty in the 'original position', where one's values are unknown. A comprehensive decisiion theory must address twofold uncertainty - normative and empirical. We present a simple model of twofold uncertainty, and show that the most popular decision principle - maximising expected value ('Expectationalism') - has rival formulations, namely Ex-Ante Expectationalism, Ex-Post Expectationalism, and hybrid theories. These rival theories recommend different decisions, reasoning modes, and attitudes to risk. But they converge under an interesting (necessary and sufficient) condition

Keywords: normative versus empirical uncertainty; expected value theory; expectationalism; ex-ante versus ex-post approach (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2020-09, Revised 2021-06
New Economics Papers: this item is included in nep-cwa, nep-hpe, nep-ore and nep-upt
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Related works:
Journal Article: Decision under normative uncertainty (2022)
Working Paper: Decision under normative uncertainty (2022)
Working Paper: Decision under normative uncertainty (2022)
Working Paper: Decision under normative uncertainty (2022)
Working Paper: Decision Under Normative Uncertainty (2021)
Working Paper: Decision under normative uncertainty (2021)
Working Paper: Decision Under Normative Uncertainty (2021)
Working Paper: Decision under normative uncertainty (2021)
Working Paper: Decision Under Normative Uncertainty (2021)
Working Paper: Decision Under Normative Uncertainty (2018)
Working Paper: Decision Under Normative Uncertainty (2018)
Working Paper: Decision Under Normative Uncertainty (2018)
Working Paper: Decision Under Normative Uncertainty (2018)
Working Paper: Decision Under Normative uncertainty (2018)
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