A general theory of subjective mixtures

A-Tier
Journal: Journal of Economic Theory
Year: 2020
Volume: 188
Issue: C

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 provide, and characterize behaviorally, a framework for constructing subjective mixtures which requires neither the Certainty Independence nor the Monotonicity axiom, replacing them with much weaker “local” properties. As we also show by means of examples, this framework provides a purely subjective foundation to most of the recent preference models which employ the Anscombe-Aumann setting. It also allows a subjective formulation of a preference for ambiguity hedging, and as a consequence allows the distinction of the notions of ambiguity aversion and preference for randomization.

Technical Details

RePEc Handle
repec:eee:jetheo:v:188:y:2020:i:c:s0022053120300545
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25