scholarly journals Bradley Conditionals and Dynamic Choice

Synthese ◽  
2021 ◽  
Author(s):  
Simon M. Huttegger ◽  
Gerard J. Rothfus
Keyword(s):  
Dynamic Consistency ◽  
Dynamic Choice

AbstractOne of the main contributions of Richard Bradley’s book is an elegant extension of Jeffrey’s Logic of Decision that countenances the evaluation of conditional prospects. This extension offers a promising new setting in which to model dynamic choice. In Bradley’s framework, plans can be understood as conditionals of an appropriate sort, while dynamic consistency can be viewed as providing a constraint on the evaluation of conditionals across time. In this paper, we study connections between planning conditionals and dynamic consistency.

scholarly journals Dynamic consistency, valuable information and subjective beliefs

2021 ◽  
Author(s):  
Spyros Galanis
Keyword(s):  
Value Of Information ◽  
Single Agent ◽  
Bayesian Updating ◽  
Dynamic Consistency ◽  
Decision Problems ◽  
Backward Induction ◽  
Subjective Expected Utility ◽  
Trading Behavior ◽  
Subjective Beliefs ◽  
Convex Preferences

AbstractAmbiguity sensitive preferences must fail either Consequentialism or Dynamic Consistency (DC), two properties that are compatible with subjective expected utility and Bayesian updating, while forming the basis of backward induction and dynamic programming. We examine the connection between these properties in a general environment of convex preferences over monetary acts and find that, far from being incompatible, they are connected in an economically meaningful way. In single-agent decision problems, positive value of information characterises one direction of DC. We propose a weakening of DC and show that one direction is equivalent to weakly valuable information, whereas the other characterises the Bayesian updating of the subjective beliefs which are revealed by trading behavior.

scholarly journals Experimental Markets and Environmental Policy

1993 ◽  
Vol 22 (2) ◽  
pp. 117-129 ◽  
Author(s):  
Jason F. Shogren
Keyword(s):  
Environmental Policy ◽  
Transaction Costs ◽  
Experimental Auction ◽  
Dynamic Choice ◽  
Auction Markets ◽  
Experimental Markets ◽  
Reduction Mechanisms ◽  
Sequential Reduction ◽  
The Impact ◽  
Coasian Bargaining

Experimental markets can be a useful tool to guide and evaluate environmental policy. This paper reviews four experiments to illustrate. Two institutional experiments are considered—Coasian bargaining with positive transaction costs, and a gaming experiment of dynamic choice in a conflict. Two valuation experiments are also discussed—the impact of sequential reduction mechanisms on the value of risk, and experimental auction markets to elicit the value of safer food.

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