Preprint D65/2009
On the Confidence Preferences Model
José Heleno Faro | Chateauneuf, Alain
Keywords: confidence functions | fuzzy priors | ambiguity aversion | multipler prior model.
In this paper we study the model of decision under uncertainty consistent with con…dence preferences. In that model, a decision maker held beliefs represented by a fuzzy set of priors and tastes captured by a standard affine utility index on consequences. First, we fi…nd some interesting properties concerning the well-known maxmin expected utility model, taking into account the point of view of the con…dence preferences model. Further, we provide new examples of preferences that capture ambiguity averse attitudes weaker than ambiguity attitudes featured by maxmin expected utility theory. Finally, we discuss the axiomatic foundations for the con…dence preferences model with optimistic behavior.