Introduction to the special issue of economics and philosophy on ambiguity aversion

Economics and Philosophy 25 (3):247-248 (2009)
  Copy   BIBTEX


The paradigm for modelling decision-making under uncertainty has undoubtedly been the theory of Expected Utility, which was first developed by von Neumann and Morgenstern (1944) and later extended by Savage (1954) to the case of subjective uncertainty. The inadequacy of the theory of Subjective Expected Utility (SEU) as a descriptive theory was soon pointed out in experiments, most famously by Allais (1953) and Ellsberg (1961). The observed departures from SEU noticed by Allais and Ellsberg became known as “paradoxes”. The Ellsberg paradox gave rise, several years later, to a new literature on decision-making under ambiguity. The theoretical side of this literature was pioneered by Schmeidler (1989). This literature views the departures from SEU in situations similar to those discussed by Ellsberg as rational responses to ambiguity. The rationality is “recovered” by relaxing Savage's Sure-Thing principle and adding an ambiguity-aversion postulate. Thus the ambiguity-aversion literature takes a normative point of view and does consider Ellsberg-type choices as behavioural “anomalies”



    Upload a copy of this work     Papers currently archived: 76,346

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Philosophy of economics.Daniel M. Hausman - 2008 - Stanford Encyclopedia of Philosophy.
Introduction to the special issue on complexity.Steven N. Durlauf - 2012 - Politics, Philosophy and Economics 11 (1):3-4.
Introduction.Brigitte Stemmer - 1999 - Brain and Language 68 (3):389-391.
Introduction to the special issue “perspectives on social cognition”.Leslie Marsh - 2008 - Marsh, Leslie (2008) Introduction to the Special Issue “Perspectives on Social Cognition”. [Journal (on-Line/Unpaginated)] (in Press).


Added to PP

51 (#232,469)

6 months
2 (#299,341)

Historical graph of downloads
How can I increase my downloads?

Author's Profile

Christian List
Ludwig Maximilians Universität, München

Citations of this work

No citations found.

Add more citations

References found in this work

The Foundations of Statistics.Leonard J. Savage - 1954 - Wiley Publications in Statistics.
The Foundations of Statistics.Leonard J. Savage - 1956 - Philosophy of Science 23 (2):166-166.
Theory of Games and Economic Behavior. [REVIEW]E. N. - 1945 - Journal of Philosophy 42 (20):550-554.

Add more references