Subjective multi-prior probability: A representation of a partial likelihood relation

Shiri Alon*, Ehud Lehrer

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

15 Scopus citations

Abstract

This paper deals with an incomplete relation over events. Such a relation naturally arises when likelihood estimations are required within environments that involve ambiguity, and in situations which engage multiple assessments and disagreement among individuals' beliefs. The paper characterizes binary relations over events, interpreted as likelihood relations, that can be represented by a unanimity rule applied to a set of prior probabilities. According to this representation an event is at least as likely as another if and only if there is a consensus among all the priors that this is indeed the case. A key axiom employed is a cancellation condition, which is a simple extension of similar conditions that appear in the literature.

Original languageEnglish
Pages (from-to)476-492
Number of pages17
JournalJournal of Economic Theory
Volume151
Issue number1
DOIs
StatePublished - May 2014

Keywords

  • Ambiguity
  • Cancellation
  • Incomplete relation
  • Multi-prior probability

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