Published May 2001 | Version Campus-Access Only
Journal Article

Range convexity and ambiguity averse preferences

Abstract

We show that range convexity of beliefs, a `technical' condition that appears naturally in axiomatizations of preferences in a Savage-like framework, imposes some unexpected restrictions when modelling ambiguity averse preferences. That is, when it is added to a mild condition, range convexity makes the preferences collapse to subjective expected utility as soon as they satisfy structural conditions that are typically used to characterize ambiguity aversion.

Additional Information

© 2001 Springer-Verlag. Received: February 25, 2000; revised version: April 17, 2000. This paper was circulated earlier with the title "Convex-Rangedness in Decision Making with Additive and Non-Additive Beliefs". We thank an anonymous referee, Kim Border, Itzhak Gilboa, and especially Peter Wakker for helpful comments and discussions. Marinacci gratefully acknowledges the financial support of MURST.

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Additional details

Identifiers

Eprint ID
80009
Resolver ID
CaltechAUTHORS:20170809-101238911

Funding

Ministero dell'Università e della Ricerca Scientifico-Tecnologica (MURST)

Dates

Created
2017-08-09
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Updated
2021-11-15
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