Rational Decision Making With Imprecise Probabilities

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Rational Decision Making With Imprecise Probabilities
Decision criteria based on an imprecise probability representation of uncertainty have been criticized, from the normative point of view, on the grounds that they make the decision maker DM vulnerable to manipulations and, more generally, likely to take up a dominated strategy. This is indeed the case when the DM is both consequentialist his choices in a subtree are not in uenced by data concerning the rest of the tree and sophisticated his present choice, determined by backward recursion, is best given his future choices. Renouncing consequentialism, which, as shown by Machina, is a way out of the di culty, may seem to increase excessively the complexity of the model. We revisit the whole question, and rst argue that in sequential decision situations it is possible to separate preference from choice, without abandoning the Revealed Preference Creed; then, we propose to assume consequentialist preference and accept nonconsequentialist behavior; building on these assumptions, we discus...
Jean-Yves Jaffray
Added 04 Aug 2010
Updated 04 Aug 2010
Type Conference
Year 1999
Authors Jean-Yves Jaffray
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