David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Theory and Decision 66 (4):301-315 (2009)
Ellsberg (The Quarterly Journal of Economics 75, 643–669 (1961); Risk, Ambiguity and Decision, Garland Publishing (2001)) argued that uncertainty is not reducible to risk. At the center of Ellsberg’s argument lies a thought experiment that has come to be known as the three-color example. It has been observed that a significant number of sophisticated decision makers violate the requirements of subjective expected utility theory when they are confronted with Ellsberg’s three-color example. More generally, such decision makers are in conflict with either the ordering assumption or the independence assumption of subjective expected utility theory. While a clear majority of the theoretical responses to these violations have advocated maintaining ordering while relaxing independence, a persistent minority has advocated abandoning the ordering assumption. The purpose of this paper is to consider a similar dilemma that exists within the context of multiattribute models, where it arises by considering indeterminacy in the weighting of attributes rather than indeterminacy in the determination of probabilities as in Ellsberg’s example.
|Keywords||multiattribute revealed preference descriptive uncertainty methodology|
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References found in this work BETA
Isaac Levi (1980). The Enterprise of Knowledge: An Essay on Knowledge, Credal Probability, and Chance. The MIT Press.
John Maynard Keynes (1921). A Treatise on Probability. Dover Publications.
Isaac Levi (1974). On Indeterminate Probabilities. Journal of Philosophy 71 (13):391-418.
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Teddy Seidenfeld (1988). Decision Theory Without “Independence” or Without “Ordering”. Economics and Philosophy 4 (2):267.
Citations of this work BETA
Jeffrey Helzner (2013). Rationalizing Two-Tiered Choice Functions Through Conditional Choice. Synthese 190 (6):929-951.
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