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• W2041146730 abstract "This paper characterizes variational Bewley preferences over Anscombe and Aumann acts, a class of binary relations that may fail completeness or transitivity vis à vis independence. The main result gives an axiomatization of preference relations ≿ represented as follows:f≿g⇔∫u(f)dp+η(p)≥∫u(g)dpfor all p∈Δ, where u is an affine utility index over a convex set X of consequences, η:Δ→[0,∞] is an ambiguity index, and Δ is the set of priors over the state space S. This representation has a natural interpretation as a weighted unanimity rule, with the function η reflecting the weight given to a prior and higher values of η corresponding to priors given less weight. Bewley's incomplete preferences can be identified precisely with the addition of transitivity or independence, and a prior receives weight either 0 if plausible or ∞ when discarded. Also, by adding only completeness, we recover subjective expected utility, i.e., the lack of transitivity implies incompleteness. Finally, we find a strong connection of our model with the class of variational preferences." @default.
• W2041146730 created "2016-06-24" @default.
• W2041146730 creator A5078927720 @default.
• W2041146730 date "2015-05-01" @default.
• W2041146730 modified "2023-10-03" @default.
• W2041146730 title "Variational Bewley preferences" @default.
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• W2041146730 doi "https://doi.org/10.1016/j.jet.2015.02.002" @default.
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