Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
956826 | Journal of Economic Theory | 2011 | 9 Pages |
Abstract
This paper shows that in the class of variational preferences the notion of probabilistic sophistication is equivalent to expected utility as long as there exists at least one event such that the independence axiom holds for bets on that event. This extends the result of Marinacci (2002) [13] and provides a novel interpretation of his result.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Tomasz Strzalecki,