CIRJE-F-183 "An Axiomatic Approach to -contamination"
Author Name Kiyohiko G. and Hiroyuki Ozaki
Date November 2002
Full Paper PDF file@
Remarks @ Subsequently published in Economic Theory, 27:2 (2006), 333-340
Abstract

Suppose that an economic agent is (1|)~100% certain that uncertainty she faces is characterized by a particular probability measure, but that she has a fear that, with Á~100% chance, her conviction is completely wrong and she is left perfectly ignorant about the true measure in the present as well as in the future.This situation is often called "-contamination of con dence." The purpose of this paper is to provide a simple set of behavioral axioms under which the decision-maker's preference is represented by the Choquet expected utility with the -contamination of con dence.