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A test of (weak) certainty independence

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We provide a test of the axioms of certainty and weak certainty independence in models of decision-making under subjective uncertainty. We show that it is through these two weakenings of the classic independence axiom that prominent ambiguity models retain properties that stand in conflict with the...

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Hauptverfasser: König-Kersting, Christian (VerfasserIn) , Kops, Christopher (VerfasserIn) , Trautmann, Stefan T. (VerfasserIn)
Dokumenttyp: Article (Journal)
Sprache:Englisch
Veröffentlicht: April 2023
In: Journal of economic theory
Year: 2023, Jahrgang: 209, Pages: 1-24
DOI:10.1016/j.jet.2023.105623
Online-Zugang:Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.jet.2023.105623
Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0022053123000194
Volltext
Verfasserangaben:Christian König-Kersting, Christopher Kops, Stefan T. Trautmann

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520 |a We provide a test of the axioms of certainty and weak certainty independence in models of decision-making under subjective uncertainty. We show that it is through these two weakenings of the classic independence axiom that prominent ambiguity models retain properties that stand in conflict with the ambiguity-sensitive behavior that is revealed in our experiment. Our findings suggest that this conflict may be of a more fundamental nature than what most of these models can accommodate. Our results call for the use of ambiguity models that can accommodate an ambiguity attitude which depends on the chances of winning. 
650 4 |a Certainty independence 
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