2007-11-01, English, Article, Journal or magazine article edition: Choice under uncertainty with the best and worst in mind: Neo-additive capacities Chateauneuf, Alain; Eichberger, Jürgen; Grant, Simon

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Bookmark: http://trove.nla.gov.au/version/170979414
Physical Description
  • journal article
Published
  • Academic Press, 2007-11-01
Language
  • English

Edition details

Title
  • Choice under uncertainty with the best and worst in mind: Neo-additive capacities
Author
  • Chateauneuf, Alain
  • Eichberger, Jürgen
  • Grant, Simon
Published
  • Academic Press, 2007-11-01
Physical Description
  • journal article
Summary
  • We develop the simplest generalization of subjective expected utility that can accommodate both optimistic and pessimistic attitudes towards uncertainty-Choquet expected utility with non-extreme-outcome-additive (neo-additive) capacities. A neo-additive capacity can be expressed as the convex combination of a probability and a special capacity, we refer to as a Hurwicz capacity, that only distinguishes between whether an event is impossible, possible or certain. We show that neo-additive capacities can be readily applied in economic problems, and we provide an axiomatization in a framework of purely subjective uncertainty.
Language
  • English
Related Resource
Identifier
  • oai:espace.library.uq.edu.au:UQ:252601

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