Ambiguity, data and preferences for information – A case-based approach

A-Tier
Journal: Journal of Economic Theory
Year: 2013
Volume: 148
Issue: 4
Pages: 1433-1462

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We model decision making under ambiguity based on available data. Decision makers express preferences over actions and data sets. We derive an α-max–min representation of preferences, in which beliefs combine objective characteristics of the data (number and frequency of observations) with subjective features of the decision maker (similarity of observations and perceived ambiguity). We identify the subjectively perceived ambiguity and separate it into ambiguity due to a limited number of observations and ambiguity due to data heterogeneity. The special case of no ambiguity provides a behavioral foundation for beliefs as similarity-weighted frequencies as in Billot et al. (2005) [3].

Technical Details

RePEc Handle
repec:eee:jetheo:v:148:y:2013:i:4:p:1433-1462
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25