search query: @journal_id 776 / total: 204
reference: 10 / 204
| Author: | Ghirardato, P. |
| Title: | Coping with ignorance: unforeseen contingencies and non-additive uncertainty |
| Journal: | Economic Theory
2001 : VOL. 17:2, p. 247-276 |
| Index terms: | DECISION MAKING UNCERTAINTY PERCEPTION |
| Language: | eng |
| Abstract: | The author models the (static) choice problem of a decision maker (DM) who is aware that her perception of the decision problem is too coarse, as for instance when there might be unforeseen contingencies. The author makes a "bounded rationality" assumption on the way the DM deals with this difficulty, and then the author show that imposing standard subjective expected utility axioms on her preferences only implies that they can be represented by a (generalized) expectation with respect to a non-additive measure, called a belief function. However, the axioms do have strong implications for how the DM copes with the type of ignorance described above. |
SCIMA