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Rabin’s calibration theorem revisited

Author

Listed:
  • Balter, Anne G.
  • Chau, Ki Wai
  • Schweizer, Nikolaus

Abstract

We simplify and refine the theoretical results behind Rabin’s famous calibration theorem for expected utility preferences and present the resulting tightened versions of his numerical illustrations.

Suggested Citation

  • Balter, Anne G. & Chau, Ki Wai & Schweizer, Nikolaus, 2022. "Rabin’s calibration theorem revisited," Economics Letters, Elsevier, vol. 210(C).
    • Handle: RePEc:eee:ecolet:v:210:y:2022:i:c:s0165176521004341
    DOI: 10.1016/j.econlet.2021.110166
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    References listed on IDEAS

    as
    1. Zvi Safra & Uzi Segal, 2008. "Calibration Results for Non-Expected Utility Theories," Econometrica, Econometric Society, vol. 76(5), pages 1143-1166, September.
    2. Freeman, David, 2015. "Calibration without reduction for non-expected utility," Journal of Economic Theory, Elsevier, vol. 158(PA), pages 21-32.
    3. Matthew Rabin, 2000. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Econometrica, Econometric Society, vol. 68(5), pages 1281-1292, September.
    4. Benjamin Armbruster & Erick Delage, 2015. "Decision Making Under Uncertainty When Preference Information Is Incomplete," Management Science, INFORMS, vol. 61(1), pages 111-128, January.
    5. Zvi Safra & Uzi Segal, 2020. "Calibration Results for Incomplete Preferences," Revue économique, Presses de Sciences-Po, vol. 71(2), pages 323-330.
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    More about this item

    Keywords

    Expected utility; Utility measurement;

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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