0 v 1 [ m at h . ST ] 2 4 M ay 2 01 6 GENERALIZED SUBJECTIVE LEXICOGRAPHIC EXPECTED UTILITY REPRESENTATION

نویسنده

  • HUGO CRUZ SANCHEZ
چکیده

We provide foundations for decisions in face of unlikely events by extending the standard framework of Savage to include preferences indexed by a family of events. We derive a subjective lexicographic expected utility representation which allows for infinitely many lexicographically ordered levels of events and for event-dependent attitudes toward risk. Our model thus provides foundations for models in finance that rely on different attitudes toward risk (e.g. Skiadas [9]) and for off-equilibrium reasonings in infinite dynamic games, thus extending and generalizing the analysis in Blume, Brandenburger and Dekel [3].

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تاریخ انتشار 2016