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Research Details
Foundations of ambiguity models under symmetry: alpha-MEU and smooth ambiguity
Abstract
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. In a symmetric setting, which ensures that preferences can be represented by a monotonic aggregation of subjective expected utilities generated by a single utility function paired with each of a set of i.i.d. probability measures over a product state space, S^{\infty}, we provide axiomatic foundations of the two models. By characterizing these models within a common framework, it becomes possible to better compare and relate them.
Type
Working Paper
Author(s)
Peter Klibanoff, Sujoy Mukerji, Kyoungwon Seo, Lorenzo Stanca
Date Published
2020
Citations
Klibanoff, Peter, Sujoy Mukerji, Kyoungwon Seo, and Lorenzo Stanca. 2020. Foundations of ambiguity models under symmetry: alpha-MEU and smooth ambiguity.