Maxmin expected utility with additivity on unambiguous events

B-Tier
Journal: Journal of Mathematical Economics
Year: 2013
Volume: 49
Issue: 3
Pages: 245-249

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper provides a model of beliefs representation in which ambiguity and unambiguity are endogenously distinguished in the maxmin expected utility model of Gilboa and Schmeidler (1989). Specifically, I first extend it by getting a representation of beliefs such that the probabilistic beliefs over each ambiguous event are represented by a nondegenerate interval, while the ones over each unambiguous event are represented by a number. I then suggest a behavioral definition of ambiguity. It provides a choice theoretical foundation for the Knightian distinction between ambiguity and unambiguity.

Technical Details

RePEc Handle
repec:eee:mateco:v:49:y:2013:i:3:p:245-249
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29