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CHOICE UNDER UNCERTAINTY WITH THE BEST AND WORST IN MIND: NEO-ADDITIVE CAPACITIES
Category: Economic Theory
Rationality and Choice Tuesday 27th August 2002, 09:30 - 11:00, Room: 1.1
Session Chair(s):
Wulf Gaertner, University of Osnabrueck, GERMANY
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Abstract:
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The concept of a non-extreme-outcome- additive capacity (neo-additive capacity) is introduced. Neo-additive capacities model optimistic and pessimistic attitudes towards uncertainty as observed in many experimental studies. Moreover, neo-additive capacities can be applied easily in economic problems, as we demonstrate by examples. This paper provides an axiomatisation of Choquet expected utility with neo-capacities in the Anscombe-Aumann framework.
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Find this file in the \Papers\1059\ folder of this CD-ROM.
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