Updating preferences with multiple priors

Artikel

We propose and axiomatically characterize dynamically consistent update rules for decision making under ambiguity. These rules apply to the preferences with multiple priors of Gilboa and Schmeidler (1989), and are the first, for any model of preferences over acts, to be able to reconcile typical behavior in the face of ambiguity (as exemplified by Ellsberg’s paradox) with dynamic consistency for all non-null events. Updating takes the form of applying Bayes’ rule to subsets of the set of priors, where the specific subset depends on the preferences, the conditioning event, and the choice problem (i.e., a feasible set of acts together with an act chosen from that set).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 2 ; Year: 2007 ; Issue: 3 ; Pages: 261-298 ; New York, NY: The Econometric Society

Classification and Topics

• Classification: Wirtschaft ; Criteria for Decision-Making under Risk and Uncertainty ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
• Subject: Updating ; dynamic consistency ; ambiguity ; Ellsberg ; Bayesian ; consequentialism

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Klibanoff, Peter ; Hanany, Eran
• Event: Veröffentlichung
• (who): The Econometric Society
• (where): New York, NY
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/150099
• Last update: 10.03.2025, 11:42 AM CET