Symmetry or Dynamic Consistency ?

  title={Symmetry or Dynamic Consistency ?},
  author={Larry G. Epstein Kyoungwon Seo},
  • Larry G. Epstein Kyoungwon Seo
  • Published 2010
In a setting with repeated experiments, where evidence about the experiments is symmetric, a decision-maker ranks bets (or acts) over their outcomes. We describe a stark modeling trade-o¤ between symmetry of preference (indi¤erence to permutations), dynamic consistency and ambiguity. Then, assuming that experiments are ordered in time, we outline an axiomatic model of preference that exhibits dynamic consistency and yet models learning under ambiguity.