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Assessing Strategic Risk
Author(s) -
Robert J. Aumann,
Jacques Drèze
Publication year - 2005
Publication title -
ssrn electronic journal
Language(s) - English
Resource type - Journals
ISSN - 1556-5068
DOI - 10.2139/ssrn.880392
Subject(s) - adversary , foundation (evidence) , axiom , context (archaeology) , management science , computer science , risk analysis (engineering) , mathematical economics , actuarial science , economics , business , political science , computer security , mathematics , geography , law , geometry , archaeology
In recent decades, the concept of subjective probability has been increasingly applied to an adversary's choices in strategic games. A careful examination reveals that the standard construction of subjective probabilities does not apply in this context. We show how the difficulty may be overcome by means of a different construction, and provide an axiomatic foundation for it.

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