Arbeitspapier

Foundations of Bayesian theory

This paper states necessary and sufficient conditions for the existence, uniqueness, and updating according to Bayes´ rule, of subjective probabilities representing individuals´ beliefs. The approach is preference based, and the result is an axiomatic subjective expected utility model of Bayesian decision making under uncertainty with statedependent preferences. The theory provides foundations for the existence of prior probabilities representing decision makers´ beliefs about the likely realization of events and for the updating of these probabilities according to Bayes´ rule.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 524

Classification
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Subject
Subjective expected utility
Bayesian theory
subjective probabilities.
Bayes-Statistik
Erwartungsnutzen
Theorie
Entscheidung bei Unsicherheit

Event
Geistige Schöpfung
(who)
Karni, Edi
Event
Veröffentlichung
(who)
The Johns Hopkins University, Department of Economics
(where)
Baltimore, MD
(when)
2005

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Karni, Edi
  • The Johns Hopkins University, Department of Economics

Time of origin

  • 2005

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