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The α-MEU model: a comment

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In [7] Ghirardato, Macheroni and Marinacci (GMM) propose a method for distinguishing between perceived ambiguity and the decision-maker's reaction to it. They study a general class of preferences which they refer to as invariant biseparable. This class includes CEU and MEU. They axiomatize a su...

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Other Authors: Eichberger, Jürgen (Other) , Grant, Simon (Other) , Kelsey, David (Other) , Koševoj, Gleb A. (Other) , Ghirardato, Paolo (Other) , Maccheroni, Fabio (Other) , Marinacci, Massimo (Other)
Format: Book/Monograph Working Paper
Language:English
Published: Exeter Univ. of Exeter, School of Business and Economics 2009
Series:Discussion papers in economics / University of Exeter, School of Business and Economics 09/03
In: Department of Economics discussion papers (09/03)

Subjects:
Arbeitspapier
Graue Literatur
Online Access:Verlag, Volltext: http://business-school.exeter.ac.uk/economics/papers/2009/Econ_0903.pdf
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Author Notes:Jürgen Eichberger, Simon Grant, David Kelsey and Gleb A. Koshevoy
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Summary:In [7] Ghirardato, Macheroni and Marinacci (GMM) propose a method for distinguishing between perceived ambiguity and the decision-maker's reaction to it. They study a general class of preferences which they refer to as invariant biseparable. This class includes CEU and MEU. They axiomatize a subclass of a-MEU preferences. If attention is restricted to finite state spaces, we show that any a-MEU preference relation, satisfies GMM's axioms if and only if a = D 0 or 1, that is, the preferences must be either maxmin or maxmax. We show by example that these axioms may be satisfied when the state space is [0,1].
Physical Description:Online Resource
Format:Systemvoraussetzungen: Acrobat Reader.

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