A subjective spin on roulette wheels

Paolo Ghirardato*, Fabio Maccheroni, Massimo Marinacci, Marciano Siniscalchi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

81 Scopus citations

Abstract

We provide a simple behavioral definition of 'subjective mixture' of acts for a large class of (not necessarily expected-utility) preferences. Subjective mixtures enjoy the same algebraic properties as the 'objective mixtures' used to great advantage in the decision setting introduced by Anscombe and Aumann (1963). This makes it possible to formulate mixture-space axioms in a fully subjective setting. For illustration, we present simple subjective axiomatizations of some models of choice under uncertainty, including Bewley's model of choice with incomplete preferences (2002).

Original languageEnglish (US)
Pages (from-to)1897-1908
Number of pages12
JournalEconometrica
Volume71
Issue number6
DOIs
StatePublished - 2003

Keywords

  • Ambiguity
  • Biseparable preferences
  • Incomplete preferences
  • Subjective mixtures

ASJC Scopus subject areas

  • Economics and Econometrics

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