Abstract
The article considers the paradigm of subjective probability and expected utility theory with respect to their applications in the theory of decision-making. Advantages and shortcomings of Savage’s axiomatic in the subjective probability theory are analyzed, the models of beliefs formation are considered. The authors propose a new approach to the analysis of decision-making — a multiple priors model, where an agent attributes to each event not a single probability, but a range of probabilities.
Original language | English |
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Pages (from-to) | 46-61 |
Number of pages | 16 |
Journal | Voprosy Ekonomiki |
Volume | 2009 |
Issue number | 10 |
DOIs | |
State | Published - 2009 |
Keywords
- Expected utility theory
- Microeconomics
- Subjective probability theory
- Theory of decision-making
- Uncertainty