Publication: Probabilistic Sophistication and Variational Preferences
Open/View Files
Date
2011
Authors
Published Version
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
The Harvard community has made this article openly available. Please share how this access benefits you.
Citation
Strzalecki, Tomasz. 2011. “Probabilistic sophistication and variational preferences.” Journal of Economic Theory 146 (5) (September): 2117-2125.
Research Data
Abstract
This paper shows that in the class of variational preferences the notion of probabilistic sophistication is equivalent to expected utility as long as there exists at least one event such that the independence axiom holds for bets on that event. This extends the result of Marinacci (2002) and provides a novel interpretation of his result.
Description
Other Available Sources
Keywords
ambiguity aversion, probabilistic sophistication, expected utility, variational preferences
Terms of Use
This article is made available under the terms and conditions applicable to Open Access Policy Articles (OAP), as set forth at Terms of Service