Related papers: Recursive Preferences and Ambiguity Attitudes
Completeness and transitivity are standard rationality conditions in economics. However, under ambiguity, decision makers sometimes violate these requirements because of the difficulty of forming accurate predictions about ambiguous events.…
Nontransitive choices have long been an area of curiosity within economics. However, determining whether nontransitive choices represent an individual's preference is a difficult task since choice data is inherently stochastic. This paper…
We show that probabilistic equivalence of a regret-based preference relationship over random variables is implied by a weak form of continuity and monotonicity.
We represent preferences that exhibit absolute or relative attitudes towards ambiguity without assuming convexity of preferences. Our analysis is motivated by the recent experimental evidence by Baillon and Placido (2019) indicating that…
We study the interaction of views, queries, and background knowledge in the form of existential rules. The motivating questions concern monotonic determinacy of a query using views w.r.t. rules, which refers to the ability to recover the…
This paper investigates a novel behavioral feature of recursive preferences: aversion to risks that persist over time, or simply \textit{correlation aversion}. Greater persistence provides information about future consumption but reduces…
Theorem 1 in Bikhchandani & Segal (2011; Theoretical Economics) suggests that a complete, transitive, monotonic, and continuous preference is regret based if and only if it is expected utility. Their Proposition 1 suggests that transitivity…
We study existence, uniqueness and computability of solutions for a class of discrete time recursive utilities models. By combining two streams of the recent literature on recursive preferences---one that analyzes principal eigenvalues of…
We present necessary conditions for monotonicity, in one form or another, of fixed point iterations of mappings that violate the usual nonexpansive property. We show that most reasonable notions of linear-type monotonicity of fixed point…
In recent years, there has been increasing interest in explanation methods for neural model predictions that offer precise formal guarantees. These include abductive (respectively, contrastive) methods, which aim to compute minimal subsets…
This paper formulates a model of utility for a continuous time framework that captures the decision-maker's concern with ambiguity about both the drift and volatility of the driving process. At a technical level, the analysis requires a…
We provide an axiomatic characterization of lexicographic preferences over the set of all random availability functions using two assumptions. The first assumption is strong monotonicity, which in our framework is equivalent to the strong…
Commutativity is a normative criterion of aggregation and updating stating that the aggregation of expert posteriors should be identical to the update of the aggregated priors. I propose a thought experiment that raises questions about the…
A query Q is monotonically determined over a set of views if Q can be expressed as a monotonic function of the view image. In the case of relational algebra views and queries, monotonic determinacy coincides with rewritability as a union of…
We design and implement lab experiments to evaluate the normative appeal of behavior arising from models of ambiguity-averse preferences. We report two main empirical findings. First, we demonstrate that behavior reflects an incomplete…
We study here preference revision, considering both the monotonic case where the original preferences are preserved and the nonmonotonic case where the new preferences may override the original ones. We use a relational framework in which…
The purpose of this paper is to clarify the relationship between various conditions implying essential undecidability: our main result is that there exists a theory $T$ in which all partially recursive functions are representable, yet $T$…
We study the robustness of Bayesian persuasion to uncertainty about the receiver's preferences. We analyze two conceptually distinct notions: continuity, in which only the modeler lacks precise knowledge, but where the model's predictions…
Counterfactuals are often described as 'retrospective,' focusing on hypothetical alternatives to a realized past. This description relates to an often implicit assumption about the structure and stability of exogenous variables in the…
Unaided human decision making appears to systematically violate consistency constraints imposed by normative theories; these biases in turn appear to justify the application of formal decision-analytic models. It is argued that both claims…