Are Counterfactual Decisions Relevant for Dynamically Consistent Updating under Nonexpected Utility ?

@inproceedings{Wakker1997AreCD,
  title={Are Counterfactual Decisions Relevant for Dynamically Consistent Updating under Nonexpected Utility ?},
  author={Peter P. Wakker},
  year={1997}
}
This paper proposes a new updating method that preserves dynamic consistency in nonexpected utility. Given nonseparability of disjoint events, preferences conditional on an observed event also depend on counterfactual outcomes, i.e., outcomes that would have resulted outside of the conditioning event; this point has been wellunderstood in the literature… CONTINUE READING