Take Action

Home | Faculty & Research Overview | Research

Research Details

Foundations of ambiguity models under symmetry: alpha-MEU and smooth ambiguity, Journal of Economic Theory

Abstract

The alpha-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^{\infty}. 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.

Type

Article

Author(s)

Peter Klibanoff, Sujoy Mukerji, Kyoungwon Seo, Lorenzo Stanca

Date Published

2021

Citations

Klibanoff, Peter, Sujoy Mukerji, Kyoungwon Seo, and Lorenzo Stanca. 2021. Foundations of ambiguity models under symmetry: alpha-MEU and smooth ambiguity. Journal of Economic Theory.

LINK
KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action