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Eliciting ambiguous beliefs using constructed ambiguous acts: Alpha-maxmin

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  • Bose, Subir
  • Daripa, Arup

Abstract

We elicit subjective ambiguous beliefs of an agent with ambiguity-sensitive preferences; in particular, as represented by the α-maxmin model. An important problem with the model is that it cannot be identified using observations from typical choice problems, as the preference parameter α confounds observation of beliefs. Our main conceptual contribution is to show that the model can in fact be fully identified by using constructed ambiguous acts to elicit α.

Suggested Citation

  • Bose, Subir & Daripa, Arup, 2022. "Eliciting ambiguous beliefs using constructed ambiguous acts: Alpha-maxmin," Journal of Mathematical Economics, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:mateco:v:103:y:2022:i:c:s0304406822001136
    DOI: 10.1016/j.jmateco.2022.102787
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    References listed on IDEAS

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    1. Bose, Subir & Daripa, Arup, 2023. "Eliciting second-order beliefs," Journal of Mathematical Economics, Elsevier, vol. 107(C).

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