Probabilistic sophistication and variational preferences

A-Tier
Journal: Journal of Economic Theory
Year: 2011
Volume: 146
Issue: 5
Pages: 2117-2125

Authors (1)

Tomasz, Strzalecki (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

This paper shows that in the class of variational preferences the notion of probabilistic sophistication is equivalent to expected utility as long as there exists at least one event such that the independence axiom holds for bets on that event. This extends the result of Marinacci (2002) [13] and provides a novel interpretation of his result.

Technical Details

RePEc Handle
repec:eee:jetheo:v:146:y:2011:i:5:p:2117-2125
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29