Published January 2000
| Submitted
Working Paper
Open
Range Convexity and Ambiguity Averse Preferences
- Creators
- Ghirardato, Paolo
- Marinacci, Massimo
Chicago
An error occurred while generating the citation.
Abstract
We show that range convexity of beliefs, a 'technical' condition that appears naturally in axiomatizations of preferences in a Savage-like framework, imposes some unexpected restrictions when modelling ambiguity averse preferences. That is, when it is added to a mild condition, range convexity makes the preferences collapse to subjective expected utility as soon as they satisfy structural conditions that are typically used to characterize ambiguity aversion.
Additional Information
This paper was circulated earlier with the title "Convex-Rangedness in Decision Making with Additive and Non-Additive Beliefs." We thank Kim Border, Itzhak Gilboa, and especially Peter Wakker for helpful comments and discussion. Marinacci gratefully acknowledges the financial support of MURST. Published as Ghirardato, P., & Marinacci, M. (2001). Range convexity and ambiguity averse preferences. Economic Theory, 17(3), 599-617.Attached Files
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Additional details
- Eprint ID
- 79983
- Resolver ID
- CaltechAUTHORS:20170808-163116323
- Ministero dell'Università e della Ricerca Scientifico-Tecnologica (MURST)
- Cofin2000
- Created
-
2017-08-09Created from EPrint's datestamp field
- Updated
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2019-10-03Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 1081