On the confidence preferences model

Journal article: In this paper we study the model of decision under uncertainty consistent with confidence preferences. In that model, a decision maker held beliefs represented by a fuzzy set of priors and tastes captured by a standard affine utility index on consequences. First, we find some interesting properties concerning the well-known maxmin expected utility model, taking into account the point of view of the confidence preferences model. Further, we provide new examples of preferences that capture ambiguity-averse attitudes weaker than ambiguity attitudes featured by maxmin expected utility theory. Finally, we discuss the axiomatic foundations for the confidence preferences model with optimistic behavior.

Author(s)

Alain Chateauneuf, José Heleno Faro

Journal
  • Fuzzy Sets and Systems
Date of publication
  • 2012
Keywords JEL
C65 D81
Pages
  • 1-15
Version
  • 1
Volume
  • 188