Foundations of ambiguity models under symmetry: α-MEU and smooth ambiguity

Arbeitspapier

The α-MEU model and the smooth ambiguity model are two popular models in decision making under ambiguity. However, the axiomatic foundations of these two models are not completely understood. We provide axiomatic foundations of these models in a symmetric setting with a product state space S∞. This setting allows marginals over S to be linked behaviorally with (limiting frequency) events. Bets on such events are shown to reveal the i.i.d. measures that are relevant for the decision maker's preferences and appear in the representations. By characterizing both models within a common framework, it becomes possible to better compare and relate them.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 922

Classification and Topics

• Classification: Wirtschaft ; Microeconomic Behavior: Underlying Principles ; Information, Knowledge, and Uncertainty: General ; Criteria for Decision-Making under Risk and Uncertainty ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Subject: Symmetry ; beliefs ; ambiguity ; multiple priors ; smooth ambiguity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Klibanoff, Peter ; Mukerji, Sujoy ; Seo, Kyoungwon ; Stanca, Lorenzo
• Event: Veröffentlichung
• (who): Queen Mary University of London, School of Economics and Finance
• (where): London
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/247191
• Last update: 10.03.2025, 11:43 AM CET