Strength of preference over complementary pairs axiomatizes alpha-MEU preferences

• 成果类型: Article
• 署名作者: Hartmann, Lorenz
• 署名单位: University of Basel
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2023.105719
• 发表日期: 2023

摘要

Preferences over acts have an alpha-Maxmin Expected Utility (alpha-MEU) representation if they can be repre-sented by the alpha-mixture of the worst and the best expected utility over a set of priors. The case alpha = 1 is the Maxmin Expected Utility (MEU) model characterized in Gilboa and Schmeidler (1989).This paper provides the first axiomatic characterization of the alpha-MEU model in the Anscombe-Aumann framework for all alpha is an element of [0, 1]\I21l. My first axiom is a weakening of Uncertainty Aversion, the second axiom is a strengthening of Obvious Dominance. Both axioms rely on the concept of complementary pairs (Sinis-calchi, 2009). I show that the two parameters of the model are uniquely set identified with a one-to-one monotone relationship. The set of alpha-values that allow a representation have a clear behavioral interpretation and can be elicited from choice data. These results clarify the behavioral implications of the model, which is crucial for decision-theoretic interpretations, applications, and testing/falsification.(c) 2023 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons .org /licenses /by /4 .0/).