Imprecise probabilistic beliefs as a context for decision-making under ambiguity

@article{Nehring2009ImprecisePB,
  title={Imprecise probabilistic beliefs as a context for decision-making under ambiguity},
  author={Klaus Nehring},
  journal={J. Economic Theory},
  year={2009},
  volume={144},
  pages={1054-1091}
}
Coherent imprecise probabilistic beliefs are modelled as incomplete comparative likelihood relations admitting a multiple-prior representation. Under a structural assumption of Equidivisibility, we provide an axiomatization of such relations and show uniqueness of the representation. In the second part of the paper, we formulate a behaviorally general “Likelihood Compatibility” axiom relating preferences and probabilistic beliefs and characterize its implications for the class of “invariant… CONTINUE READING

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