1. Types of Uncertainty.Richard Bradley & Mareile Drechsler - 2014 - Erkenntnis 79 (6):1225-1248.
    We distinguish three qualitatively different types of uncertainty—ethical, option and state space uncertainty—that are distinct from state uncertainty, the empirical uncertainty that is typically measured by a probability function on states of the world. Ethical uncertainty arises if the agent cannot assign precise utilities to consequences. Option uncertainty arises when the agent does not know what precise consequence an act has at every state. Finally, state space uncertainty exists when the agent is unsure how to construct an exhaustive state space. (...)
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  2. Axiomatizing bounded rationality: the priority heuristic.Mareile Drechsler, Konstantinos Katsikopoulos & Gerd Gigerenzer - 2014 - Theory and Decision 77 (2):183-196.
    This paper presents an axiomatic framework for the priority heuristic, a model of bounded rationality in Selten’s (in: Gigerenzer and Selten (eds.) Bounded rationality: the adaptive toolbox, 2001) spirit of using empirical evidence on heuristics. The priority heuristic predicts actual human choices between risky gambles well. It implies violations of expected utility theory such as common consequence effects, common ratio effects, the fourfold pattern of risk taking and the reflection effect. We present an axiomatization of a parameterized version of the (...)
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    Rationality, decisions and large worlds.Mareile Drechsler - 2012 - Dissertation, London School of Economics
    Taking Savage's subjective expected utility theory as a starting point, this thesis distinguishes three types of uncertainty which are incompatible with Savage's theory for small worlds: ambiguity, option uncertainty and state space uncertainty. Under ambiguity agents cannot form a unique and additive probability function over the state space. Option uncertainty exists when agents cannot assign unique consequences to every state. Finally, state space uncertainty arises when the state space the agent constructs is not exhaustive, such that unforeseen contingencies can occur. (...)
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