Foundations of ambiguity models under symmetry: α-MEU and smooth ambiguity

• 成果类型: Article
• 署名作者: Klibanoff, Peter; Mukerji, Sujoy; Seo, Kyoungwon; Stanca, Lorenzo
• 署名单位: Northwestern University; University of London; Queen Mary University London; Seoul National University (SNU)
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2021.105202
• 发表日期: 2022
• 关键词: symmetry; beliefs; ambiguity; multiple priors; Smooth ambiguity

摘要

The alpha-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-infinity. 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. (C) 2021 Elsevier Inc. All rights reserved.