The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Nov, 2012, Volume 80, Issue 6
https://doi.org/10.3982/ECTA9367
p. 2827-2847
Paolo Ghirardato, Marciano Siniscalchi
This paper considers local and global multiple‐prior representations of ambiguity for preferences that are (i) monotonic, (ii) Bernoullian, that is, admit an affine utility representation when restricted to constant acts, and (iii) locally Lipschitz continuous. We do not require either certainty independence or uncertainty aversion. We show that the set of priors identified by Ghirardato, Maccheroni, and Marinacci's (2004) “unambiguous preference” relation can be characterized as a union of Clarke differentials. We then introduce a behavioral notion of “locally better deviation” at an act and show that it characterizes the Clarke differential of the preference representation at that act. These results suggest that the priors identified by these preference statements are directly related to (local) optimizing behavior.
This document contains a characterization of locally Lipschitz and nice preferences, calculations for Example 4, a behavioral test for relevant priors, and additional technical results.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
