Arbeitspapier

Decision-making with partial information

In this paper, we study choice under uncertainty with belief functions on a set of outcomes as objects of choice. Belief functions describe what is objectively known about the probabilities of outcomes. We assume that decision makers have preferences over belief functions that reflect both their valuation of outcomes and the information available about the likelihood of outcomes. We provide axioms which characterize a preference representation for belief functions that captures what is (objectively) known about the likelihood of outcomes and combines it with subjective beliefs about unknown probabilities according to the "principle of insufficient reason". The approach is novel in its treatment of partial information and in its axiomatization of the uniform distribution in the case of ignorance. Moreover, our treatment of partial information yields a natural distinction between ambiguity and ambiguity attitude.

Language
Englisch

Bibliographic citation
Series: Discussion Paper Series ; No. 680

Classification
Wirtschaft
Subject
Entscheidung unter Unsicherheit
Unvollkommene Information
Theorie

Event
Geistige Schöpfung
(who)
Eichberger, Jürgen
Pasichnichenko, Illia
Event
Veröffentlichung
(who)
University of Heidelberg, Department of Economics
(where)
Heidelberg
(when)
2020

DOI
doi:10.11588/heidok.00028152
Handle
URN
urn:nbn:de:bsz:16-heidok-281529
Last update
10.03.2025, 11:41 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Eichberger, Jürgen
  • Pasichnichenko, Illia
  • University of Heidelberg, Department of Economics

Time of origin

  • 2020

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