Premium
Incomplete Preferences Under Uncertainty: Indecisiveness in Beliefs versus Tastes
Author(s) -
Ok Efe A.,
Ortoleva Pietro,
Riella Gil
Publication year - 2012
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.3982/ecta8040
Subject(s) - knightian uncertainty , completeness (order theory) , axiom , mathematical economics , property (philosophy) , independence (probability theory) , expected utility hypothesis , dual (grammatical number) , econometrics , subjective expected utility , mathematics , economics , ambiguity , computer science , epistemology , statistics , philosophy , mathematical analysis , geometry , linguistics , programming language
We investigate the classical Anscombe–Aumann model of decision‐making under uncertainty without the completeness axiom. We distinguish between the dual traits of “indecisiveness in beliefs” and “indecisiveness in tastes.” The former is captured by the Knightian uncertainty model, the latter by the single‐prior expected multi‐utility model. We characterize axiomatically the latter model. Then we show that, under independence and continuity, these two models can be jointly characterized by means of a partial completeness property.