The article studies adverse selection in the context of insurance demand for a rent car when the decision criterion is a Choquet expectation. Our approach of integrating information to the insurance decision is able to implement a backward induction procedure to determine the optimal action...

This note completes the main result of Zimper (Theory and decision, doi:<ExternalRef> <RefSource>10.1007/s11238-010-9221-8</RefSource> <RefTarget Address="10.1007/s11238-010-9221-8" TargetType="DOI"/> </ExternalRef>, <CitationRef CitationID="CR7">2010</CitationRef>), by showing that additional conditions are needed in order the law of iterated expectations to hold true for Choquet decision makers. Due to the comonotonic additivity of Choquet...</citationref></refsource></externalref>

We give an axiomatic foundation to the updating rule proposed by Sarin and Wakker [Sarin, R., Wakker, P.P., 1998a. Revealed likelihood and knightian uncertainty. Journal of Risk and Uncertainty 16, 223–250] for CEU preferences. This rule is dynamically consistent but non-consequentialist,...