Probability and Uncertainty in Economic Modeling
Keyword(s):
The article considers the paradigm of subjective probability and expected utility theory with respect to their applications in the theory of decision-making. Advantages and shortcomings of Savage’s axiomatic in the subjective probability theory are analyzed, the models of beliefs formation are considered. The authors propose a new approach to the analysis of decision-making — a multiple priors model, where an agent attributes to each event not a single probability, but a range of probabilities.
2016 ◽
Vol 104
(8)
◽
pp. 1647-1661
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2017 ◽
Vol 9
(2)
◽
pp. 7-14
2016 ◽
Vol 38
(05)
◽
pp. 515-522
1997 ◽
Vol 45
(2)
◽
pp. 307-328
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