Ellsbergs Paradox and the Value of Chances

نویسنده

  • Richard Bradley
چکیده

What value should we put on chances? This paper examines the hypothesis that, contra the widely accepted theory of von Neumann and Morgenstern, chances can have diminishing marginal value. The hypothesis is defended by showing that it can be used to explain both the typical pattern of preferences observed in the Ellsberg paradox and the intuition that lotteries are the best way to distribute indivisible good.

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تاریخ انتشار 2014