FIRST INTERNATIONAL SYMPOSIUM ON
IMPRECISE PROBABILITIES AND THEIR APPLICATIONS

Ghent, Belgium
30 June - 2 July 1999

ELECTRONIC PROCEEDINGS

Klaus Nehring

Ignorance and Rational Choice

Abstract

Ignorance about the comparative likelihood of events is reflected in incompleteness of an agent's preferences over bets. We argue that determinate rational choice is still possible if optimal choice is understood as context-dependent best compromise. An axiomatic characterization of such a choice rule is described for the special case of situations of complete ignorance (maximally incomplete preferences) which can be viewed as ``reduced forms'' of general decision problems under partial ignorance.

Keywords. Incomplete preference, ignorance, robustness, context-dependent choice, non-informative priors.

The paper is available in the following formats and sites:

Authors addresses:

Department of Economics
University of California, Davis
Davis, CA 95616
USA




E-mail addresses:

Klaus Nehring kdnehring@ucdavis.edu

Related Web Sites

Klaus Nehring


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