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Stochastic Independence under Knightian Uncertainty

Author

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  • Leonardo Pejsachowicz

    (X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris)

Abstract

We show that under Bewley preferences, the axiom that usually characterizes stochastic independence is not sufficient to uniquely identify a model of independent beliefs. We thus introduce the concept of product equivalent of an act and show that it allows us to obtain a unique characterization of stochastic independence for the Bewley and multiple-priors expected utility models.

Suggested Citation

  • Leonardo Pejsachowicz, 2016. "Stochastic Independence under Knightian Uncertainty," Post-Print hal-01753323, HAL.
    • Handle: RePEc:hal:journl:hal-01753323
    DOI: 10.3917/redp.263.0379
    Note: View the original document on HAL open archive server: https://hal.science/hal-01753323
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    References listed on IDEAS

    as
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    6. , G. & ,, 2010. "Symmetry of evidence without evidence of symmetry," Theoretical Economics, Econometric Society, vol. 5(3), September.
    7. Efe A. Ok & Pietro Ortoleva & Gil Riella, 2012. "Incomplete Preferences Under Uncertainty: Indecisiveness in Beliefs versus Tastes," Econometrica, Econometric Society, vol. 80(4), pages 1791-1808, July.
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    Cited by:

    1. Federica Ceron & Vassili Vergopoulos, 2021. "On stochastic independence under ambiguity," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(3), pages 925-960, April.

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