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A General Update Rule for Convex Capacities

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  • Mayumi Horie

    (Institute of Economic Research, Kyoto University)

Abstract

A characterization of a general update rule for convex capacities, the G-updating rule, is investigated. We introduce a consistency property which bridges between unconditional and conditional preferences, and deduce an update rule for unconditional capacities. The axiomatic basis for the G-updating rule is established through consistent counterfactual acts, which take the form of trinary acts expressed in terms of G, an ordered tripartition of global states.

Suggested Citation

  • Mayumi Horie, 2007. "A General Update Rule for Convex Capacities," KIER Working Papers 644, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:644
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP644.pdf
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    References listed on IDEAS

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    7. Schmeidler, David, 1989. "Subjective Probability and Expected Utility without Additivity," Econometrica, Econometric Society, vol. 57(3), pages 571-587, May.
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    12. repec:ebl:ecbull:v:4:y:2006:i:19:p:1-6 is not listed on IDEAS
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    Cited by:

    1. Mayumi Horie, 2016. "Bayesian Updating for Complementarily Additive Beliefs under Ambiguity," KIER Working Papers 935, Kyoto University, Institute of Economic Research.

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    More about this item

    Keywords

    ambiguous belief; Bayes' rule; update rule; convex capacity; Choquet ex- pected utility; conditional preference;
    All these keywords.

    JEL classification:

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

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