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.
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