Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81099 
Year of Publication: 
2012
Series/Report no.: 
Working Papers No. 462
Publisher: 
Bielefeld University, Institute of Mathematical Economics (IMW), Bielefeld
Abstract: 
If a decision maker, in a world of uncertainty à la Anscombe and Aumann (1963), can choose acts according to some objective probability distribution (by throwing dice for instance) from any given set of acts, then there is no set of acts that allows an experimenter to test more than the Axiom of EUOL (that the DM evaluates objective lotteries with an expected utility function). In fact there is no (common) experimental design that allows an experimenter to test more than EUOL. For any decision problem (or set of decision problems), for any preference relation that satisfies the Axiom EUOL, and for any optimal choice (or collection of choices) given this preference relation, there is another preference relation that satisfies EUOL plus the Savage axioms, for which this choice is also optimal.
Subjects: 
ambiguity
decision theory
Knightian uncertainty
experiments
JEL: 
C72
C81
C90
D01
D03
D81
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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