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Maxmin expected utility in Savage's framework

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  • Borie, Dino

Abstract

We axiomatize the maxmin expected utility model in Savage's original framework, which does not require a rich set of consequences nor objective probabilities. The key conditions in our result reformulate Gilboa–Schmeidler's (1989) Uncertainty Aversion and Certainty Independence for Savage's acts. Also, we propose a definition for comparative ambiguity aversion in this context.

Suggested Citation

  • Borie, Dino, 2023. "Maxmin expected utility in Savage's framework," Journal of Economic Theory, Elsevier, vol. 210(C).
    • Handle: RePEc:eee:jetheo:v:210:y:2023:i:c:s0022053123000613
    DOI: 10.1016/j.jet.2023.105665
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    More about this item

    Keywords

    Maxmin expected utility; Purely subjective probability; Uncertainty aversion; Savage;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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