Incomplete preferences under uncertainty: Indecisiveness in beliefs versus tastes

Efe A. Ok, Pietro Ortoleva, Gil Riella

    Research output: Contribution to journalArticlepeer-review

    Abstract

    We investigate the classical Anscombe-Aumann model of decision-making under uncertainty without the completeness axiom. We distinguish between the dual traits of "indecisiveness in beliefs" and "indecisiveness in tastes." The former is captured by the Knightian uncertainty model, the latter by the single-prior expected multi-utility model. We characterize axiomatically the latter model. Then we show that, under independence and continuity, these two models can be jointly characterized by means of a partial completeness property.

    Original languageEnglish (US)
    Pages (from-to)1791-1808
    Number of pages18
    JournalEconometrica
    Volume80
    Issue number4
    DOIs
    StatePublished - Jul 2012

    Keywords

    • Incomplete preferences
    • Knightian uncertainty
    • The Anscombe-Aumann model

    ASJC Scopus subject areas

    • Economics and Econometrics

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