Aggregation of not necessarily independent opinions

Marcello Basili and Luca Pratelli (luca_pratelli@marina.difesa.it)

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: We consider an aggregation scheme of opinions expressed through different probability distributions or multiple priors decision model. The decision-maker adopts entropy maximization as a measure of risk diversification and a rational form of prudence for valuing uncertain outcomes. We show a new aggregation rule formalization based on the idea that the decision-maker has a more reliable set of outcomes called ordinary and two fat tails that include more ambiguous and extreme events.

Keywords: Ambiguity; Aggregation; Entropy; Multiple Priors; Quantiles (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-cdm, nep-mic, nep-rmg and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:677

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