Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71978
Authors: 
Karni, Edi
Year of Publication: 
2005
Series/Report no.: 
Working Papers, The Johns Hopkins University, Department of Economics 524
Abstract: 
This paper states necessary and sufficient conditions for the existence, uniqueness, and updating according to Bayes´ rule, of subjective probabilities representing individuals´ beliefs. The approach is preference based, and the result is an axiomatic subjective expected utility model of Bayesian decision making under uncertainty with statedependent preferences. The theory provides foundations for the existence of prior probabilities representing decision makers´ beliefs about the likely realization of events and for the updating of these probabilities according to Bayes´ rule.
Subjects: 
Subjective expected utility
Bayesian theory
subjective probabilities.
JEL: 
D81
Document Type: 
Working Paper

Files in This Item:
File
Size
297.01 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.