Probability and uncertainty in economic modeling

I. Gilboa, W. A. Postlewaite, D. Schmeidler

Research output: Contribution to journalArticlepeer-review


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 languageEnglish
Pages (from-to)46-61
Number of pages16
JournalVoprosy Ekonomiki
Issue number10
StatePublished - 2009


  • Expected utility theory
  • Microeconomics
  • Subjective probability theory
  • Theory of decision-making
  • Uncertainty


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