A theory of stochastic choice under uncertainty

A theory of stochastic choice under uncertainty

In this paper we propose a characterization of stochastic choice under risk and under uncertainty. We presume that decision makers’ actual choices are governed by randomly selected states of mind, and study the representation of decision makers’ perceptions of the stochastic process underlying the s...

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Veröffentlicht in:Journal of mathematical economics 2016-03, Vol.63, p.164-173
Hauptverfasser: Karni, Edi, Safra, Zvi
Format: Artikel
Sprache:eng
Schlagworte:
Decision making under uncertainty
Decision theory
Incomplete preferences
Perceptions
Preferences over menus
Random choice
Stochastic models
Studies
Subjective state space
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Zusammenfassung:In this paper we propose a characterization of stochastic choice under risk and under uncertainty. We presume that decision makers’ actual choices are governed by randomly selected states of mind, and study the representation of decision makers’ perceptions of the stochastic process underlying the selection of their state of mind. The connections of this work to the literatures on random choice, choice behavior when preference are incomplete; choice of menus; and grades of indecisiveness are also discussed.
ISSN:0304-4068
1873-1538
DOI:10.1016/j.jmateco.2016.02.001