The α-MEU model: a comment
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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| Weitere Verfasser: | , , , , , , |
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| Dokumenttyp: | Buch/Monographie Arbeitspapier |
| Sprache: | Englisch |
| Veröffentlicht: |
Exeter
Univ. of Exeter, School of Business and Economics
2009
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| Schriftenreihe: | Discussion papers in economics / University of Exeter, School of Business and Economics
09/03 |
| In: |
Department of Economics discussion papers (09/03)
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| Schlagworte: | |
| Online-Zugang: | Verlag, Volltext: http://business-school.exeter.ac.uk/economics/papers/2009/Econ_0903.pdf |
| Verfasserangaben: | Jürgen Eichberger, Simon Grant, David Kelsey and Gleb A. Koshevoy |
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| 245 | 0 | 4 | |a The α-MEU model |b a comment |c Jürgen Eichberger, Simon Grant, David Kelsey and Gleb A. Koshevoy |
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| 520 | |a 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]. | ||
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