Published May 2001
| public
Journal Article
Range convexity and ambiguity averse preferences
- Creators
- Ghirardato, Paolo
- Marinacci, Massimo
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
© 2001 Springer-Verlag. Received: February 25, 2000; revised version: April 17, 2000. This paper was circulated earlier with the title "Convex-Rangedness in Decision Making with Additive and Non-Additive Beliefs". We thank an anonymous referee, Kim Border, Itzhak Gilboa, and especially Peter Wakker for helpful comments and discussions. Marinacci gratefully acknowledges the financial support of MURST.Additional details
- Eprint ID
- 80009
- DOI
- 10.1007/PL00004118
- Resolver ID
- CaltechAUTHORS:20170809-101238911
- Ministero dell'Università e della Ricerca Scientifico-Tecnologica (MURST)
- Created
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2017-08-09Created from EPrint's datestamp field
- Updated
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2021-11-15Created from EPrint's last_modified field