Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81099
Authors: 
Kuzmics, Christoph
Year of Publication: 
2012
Series/Report no.: 
Working Papers, Institute of Mathematical Economics 462
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
Document Type: 
Working Paper

Files in This Item:
File
Size
289.24 kB





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