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Strength of preference over complementary pairs axiomatizes alpha-MEU preferences

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  • Hartmann, Lorenz

Abstract

Preferences over acts have an α-Maxmin Expected Utility (α-MEU) representation if they can be represented by the α-mixture of the worst and the best expected utility over a set of priors. The case α=1 is the Maxmin Expected Utility (MEU) model characterized in Gilboa and Schmeidler (1989).

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  • Hartmann, Lorenz, 2023. "Strength of preference over complementary pairs axiomatizes alpha-MEU preferences," Journal of Economic Theory, Elsevier, vol. 213(C).
    • Handle: RePEc:eee:jetheo:v:213:y:2023:i:c:s0022053123001151
    DOI: 10.1016/j.jet.2023.105719
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    Cited by:

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    2. Lorenz Hartmann & David Kelsey, 2024. "Location Invariance and Games with Ambiguity," Discussion Papers 2024-05, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    3. Bastianello, Lorenzo & Chateauneuf, Alain & Cornet, Bernard, 2024. "Gain–loss hedging and cumulative prospect theory," Mathematical Social Sciences, Elsevier, vol. 131(C), pages 40-47.

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    More about this item

    Keywords

    α-Maxmin expected utility; Complementary pairs; Ambiguity;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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