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A Rational Ambiguity Averse Person Will Never Display Her Ambiguity Aversion

Authors: Christoph Kuzmics;

A Rational Ambiguity Averse Person Will Never Display Her Ambiguity Aversion

Abstract

Suppose a decision maker (DM), in the language of Anscombe and Aumann (1963), has preferences over acts (horse-race lotteries) that satisfy the von Neumann and Morgenstern (1944) axioms for objective lotteries (constant acts) and Anscombe and Aumann's (1963) Axioms of Reversal of Order and Dominance. This DM may have preferences that accommodate ambiguity aversion. Suppose the DM can choose acts objectively randomly (by flipping her own fair coin, for instance). Suppose the DM is able to (has the willpower to) commit to her ex-ante choice of a possibly self-generated random act. Then there is no set of decision problems an analyst can give this DM in which the DM can be shown to be ambiguity-averse.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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Average
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