A preference model for choice subject to surprise

Grant, Simon and Quiggin, John (2015) A preference model for choice subject to surprise. Theory and Decision, 79 2: 167-180. doi:10.1007/s11238-014-9472-x

Author Grant, Simon
Quiggin, John
Title A preference model for choice subject to surprise
Journal name Theory and Decision   Check publisher's open access policy
ISSN 1573-7187
Publication date 2015-09-01
Year available 2014
Sub-type Article (original research)
DOI 10.1007/s11238-014-9472-x
Open Access Status DOI
Volume 79
Issue 2
Start page 167
End page 180
Total pages 14
Place of publication New York, NY United States
Publisher Springer New York
Collection year 2016
Language eng
Formatted abstract
Grant and Quiggin (Econ Theo 54:717–755, 2013a, J Econ Behav Organ 93:17–31, 2013b) suggest that agents employ heuristics to constrain the set of acts under consideration before applying standard decision theory, based on their restricted model of the world to the remaining acts. The aim of this paper is to provide an axiomatic foundation, and an associated representation theorem, for the preference model proposed by Grant and Quiggin. The unawareness of the agent is encoded both in the specification of the states and in an elaboration of the set of consequences. We illustrate how the representation can be applied to rationalize two notions of the precautionary principle that were proposed and discussed in Grant and Quiggin (J Econ Behav Organ 93:17–31, 2013b).
Keyword Unforeseen consequences
Bounded rationality
Expected uncertain utility
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
School of Economics Publications
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