@article{735a0ea20ece4631b6c24dfc35c3a3e4,
title = "Foundations of ambiguity models under symmetry: α-MEU and smooth ambiguity",
abstract = "The α-MEU model and the smooth ambiguity model are two popular models in decision making under ambiguity. However, the axiomatic foundations of these two models are not completely understood. We provide axiomatic foundations of these models in a symmetric setting with a product state space S∞. This setting allows marginals over S to be linked behaviorally with (limiting frequency) events. Bets on such events are shown to reveal the i.i.d. measures that are relevant for the decision maker's preferences and appear in the representations. By characterizing both models within a common framework, it becomes possible to better compare and relate them.",
keywords = "Ambiguity, Beliefs, Multiple priors, Smooth ambiguity, Symmetry",
author = "Peter Klibanoff and Sujoy Mukerji and Kyoungwon Seo and Lorenzo Stanca",
note = "Funding Information: We thank an editor and two referees for their helpful comments. Seo gratefully acknowledges financial support from the Institute of Finance and Banking, and the Institute of Management Research at Seoul National University . Mukerji gratefully acknowledges support from ORA-ESRC award ES/S015299/1 . Funding Information: We thank an editor and two referees for their helpful comments. Seo gratefully acknowledges financial support from the Institute of Finance and Banking, and the Institute of Management Research at Seoul National University. Mukerji gratefully acknowledges support from ORA-ESRC award ES/S015299/1. Publisher Copyright: {\textcopyright} 2021 Elsevier Inc.",
year = "2022",
month = jan,
doi = "10.1016/j.jet.2021.105202",
language = "English (US)",
volume = "199",
journal = "Journal of Economic Theory",
issn = "0022-0531",
publisher = "Academic Press Inc.",
}