Abstract
Uncertainty aversion is often modelled as (strict) quasi-concavity of preferences over uncertain acts. A theory of uncertainty aversion may be characterized by the pairs of acts for which strict preference for a mixture between them is permitted. This paper provides such a characterization for two leading representations of uncertainty averse preferences; those of Schmeidler [24] (Choquet expected utility or CEU) and of Gilboa and Schmeidler [16] (maxmin expected utility with a non-unique prior or MMEU). This characterization clarifies the relation between the two theories.
Original language | English (US) |
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Pages (from-to) | 289-301 |
Number of pages | 13 |
Journal | Social Choice and Welfare |
Volume | 18 |
Issue number | 2 |
DOIs | |
State | Published - Jan 1 2001 |
ASJC Scopus subject areas
- Social Sciences (miscellaneous)
- Economics and Econometrics