Subjective Ambiguity, Expected Utility and Choquet Expected Utility

Using the Savage set up, the paper provides a simple axiomatization of the Choquet Expected Utility model where the capacity is an inner measure. Two attractive features of the model are its specificity and the transparency of its axioms.The key axiom states that the decision-maker uses unambiguous acts to approximate ambiguous ones, In addition, the notion of 'ambiguity' is subjective and derived from perferences.

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Year of publication:	1999-11
Authors:	Zhang, Jiankang
Institutions:	Carleton University, Department of Economics
Subject:	subjective probability \| ambiguity \| ambiguity aversion

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Extent:	application/pdf
Series:	Carleton Economic Papers.
Type of publication:	Book / Working Paper
Notes:	Published: – revised version in Economic Theory, Vol. 20, No. 1 (August 2002), pp. 159–181 Number 99-19 26 pages
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005168896