Abraham Wald's complete class theorem and Knightian uncertainty

B-Tier
Journal: Games and Economic Behavior
Year: 2017
Volume: 104
Issue: C
Pages: 666-673

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

I study the implications of Wald's (1947) complete class theorem for decision making under Knightian uncertainty (or ambiguity). Suppose we call someone who uses Wald's approach to statistical decision making a Waldian. A Waldian may then have preferences over acts that are not in agreement with subjective expected utility but always chooses as if she was a subjective expected utility maximizer. In particular, even Wald's (1945) minmax decision rule is consistent with subjective expected utility.

Technical Details

RePEc Handle
repec:eee:gamebe:v:104:y:2017:i:c:p:666-673
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25