TY - JOUR
T1 - Justifiable preferences
AU - Lehrer, Ehud
AU - Teper, Roee
PY - 2011/3
Y1 - 2011/3
N2 - We characterize preferences over acts that can be represented by a utility function and a multiple-prior, such that an act f is preferred to act g if there is a prior under which the expected utility induced by f is higher than that induced by g. These preferences are referred to as justifiable preferences. We further introduce a generalized model of ambiguity that involves a collection of multiple-priors, namely, multiple multiple-priors and incorporate Bewley's Knightian model in justifiability: f is preferred to g if, according to at least one set of priors, f is unanimously preferred to g.
AB - We characterize preferences over acts that can be represented by a utility function and a multiple-prior, such that an act f is preferred to act g if there is a prior under which the expected utility induced by f is higher than that induced by g. These preferences are referred to as justifiable preferences. We further introduce a generalized model of ambiguity that involves a collection of multiple-priors, namely, multiple multiple-priors and incorporate Bewley's Knightian model in justifiability: f is preferred to g if, according to at least one set of priors, f is unanimously preferred to g.
KW - Justifiable preferences
KW - Multiple multiple-prior
KW - Multiple-prior
UR - http://www.scopus.com/inward/record.url?scp=79952699657&partnerID=8YFLogxK
U2 - 10.1016/j.jet.2010.12.007
DO - 10.1016/j.jet.2010.12.007
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AN - SCOPUS:79952699657
SN - 0022-0531
VL - 146
SP - 762
EP - 774
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 2
ER -