Incomplete preferences under uncertainty: Indecisiveness in beliefs versus tastes

Ahmet Ok, Pietro Ortoleva, Gil Riella

    Research output: Contribution to journalArticle

    Abstract

    We investigate the classical Anscombe-Aumann model of decision-making under uncertainty without the completeness axiom. We distinguish between the dual traits of "indecisiveness in beliefs" and "indecisiveness in tastes." The former is captured by the Knightian uncertainty model, the latter by the single-prior expected multi-utility model. We characterize axiomatically the latter model. Then we show that, under independence and continuity, these two models can be jointly characterized by means of a partial completeness property.

    Original languageEnglish (US)
    Pages (from-to)1791-1808
    Number of pages18
    JournalEconometrica
    Volume80
    Issue number4
    DOIs
    StatePublished - Jul 2012

    Fingerprint

    Incomplete preferences
    Uncertainty
    Completeness
    Axiom
    Knightian uncertainty
    Continuity
    Decision making under uncertainty

    Keywords

    • Incomplete preferences
    • Knightian uncertainty
    • The Anscombe-Aumann model

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Incomplete preferences under uncertainty : Indecisiveness in beliefs versus tastes. / Ok, Ahmet; Ortoleva, Pietro; Riella, Gil.

    In: Econometrica, Vol. 80, No. 4, 07.2012, p. 1791-1808.

    Research output: Contribution to journalArticle

    Ok, Ahmet ; Ortoleva, Pietro ; Riella, Gil. / Incomplete preferences under uncertainty : Indecisiveness in beliefs versus tastes. In: Econometrica. 2012 ; Vol. 80, No. 4. pp. 1791-1808.
    @article{b604d446180d4cc68143679b3fd4f4ea,
    title = "Incomplete preferences under uncertainty: Indecisiveness in beliefs versus tastes",
    abstract = "We investigate the classical Anscombe-Aumann model of decision-making under uncertainty without the completeness axiom. We distinguish between the dual traits of {"}indecisiveness in beliefs{"} and {"}indecisiveness in tastes.{"} The former is captured by the Knightian uncertainty model, the latter by the single-prior expected multi-utility model. We characterize axiomatically the latter model. Then we show that, under independence and continuity, these two models can be jointly characterized by means of a partial completeness property.",
    keywords = "Incomplete preferences, Knightian uncertainty, The Anscombe-Aumann model",
    author = "Ahmet Ok and Pietro Ortoleva and Gil Riella",
    year = "2012",
    month = "7",
    doi = "10.3982/ECTA8040",
    language = "English (US)",
    volume = "80",
    pages = "1791--1808",
    journal = "Econometrica",
    issn = "0012-9682",
    publisher = "Wiley-Blackwell",
    number = "4",

    }

    TY - JOUR

    T1 - Incomplete preferences under uncertainty

    T2 - Indecisiveness in beliefs versus tastes

    AU - Ok, Ahmet

    AU - Ortoleva, Pietro

    AU - Riella, Gil

    PY - 2012/7

    Y1 - 2012/7

    N2 - We investigate the classical Anscombe-Aumann model of decision-making under uncertainty without the completeness axiom. We distinguish between the dual traits of "indecisiveness in beliefs" and "indecisiveness in tastes." The former is captured by the Knightian uncertainty model, the latter by the single-prior expected multi-utility model. We characterize axiomatically the latter model. Then we show that, under independence and continuity, these two models can be jointly characterized by means of a partial completeness property.

    AB - We investigate the classical Anscombe-Aumann model of decision-making under uncertainty without the completeness axiom. We distinguish between the dual traits of "indecisiveness in beliefs" and "indecisiveness in tastes." The former is captured by the Knightian uncertainty model, the latter by the single-prior expected multi-utility model. We characterize axiomatically the latter model. Then we show that, under independence and continuity, these two models can be jointly characterized by means of a partial completeness property.

    KW - Incomplete preferences

    KW - Knightian uncertainty

    KW - The Anscombe-Aumann model

    UR - http://www.scopus.com/inward/record.url?scp=84864305174&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=84864305174&partnerID=8YFLogxK

    U2 - 10.3982/ECTA8040

    DO - 10.3982/ECTA8040

    M3 - Article

    AN - SCOPUS:84864305174

    VL - 80

    SP - 1791

    EP - 1808

    JO - Econometrica

    JF - Econometrica

    SN - 0012-9682

    IS - 4

    ER -