Decision Under Normative Uncertainty

Franz Dietrich and Brian Jabarian ()
Additional contact information
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. From a purely formal perspective, normative uncertainty is comparable to (Harsanyian or Rawlsian) identity uncertainty in the 'original position', where one's future values are unknown. A comprehensive decision 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 different formulations, namely Ex-Ante Expectationalism, Ex-Post Expectationalism, and hybrid theories. These alternative theories recommend different decisions, reasoning modes, and attitudes to risk. But they converge under an interesting (necessary and sufficient) condition

Keywords: ex-ante versus ex-post approach; expectationalism; excepted value theory; normative versus; empirical uncertainty (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2020-09, Revised 2021-09
References: Add references at CitEc
Citations:

Downloads: (external link)
http://mse.univ-paris1.fr/pub/mse/CES2020/20015RRR.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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)
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:mse:cesdoc:20015rrr

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().