Simple Characterization of the Hurwicz Criterium under Uncertainty
Journal article: Schmeidler [1986], [1989] famously used his nonadditive probability model to describe a decision-maker’s uncertainty aversion and/or uncertainty loving. This short note illustrates how nonadditive probability can also be used to obtain a simple characterization of the Hurwicz criterium, where the decision-maker has a balanced attitude towards uncertainty, intermediate between full aversion and full loving.
Author(s)
Alain Chateauneuf, Caroline Ventura, Vassili Vergopoulos
Journal
- Revue Economique
Collection
- Special issue dedicated to David Schmeidler
Date of publication
- 2020
Keywords JEL
Keywords
- Schmeidler’s model
- Hurwicz criterium
- Aversion and attraction with respect to uncertainty
Pages
- 331-336
URL of the HAL notice
Version
- 1
Volume
- 71