Abstract
This paper takes the Dekel, Lipman, and Rustichini (2001) framework, in which subjective beliefs over subjective states cannot be identified, and proves a conjecture made in their paper: if the Bernoulli utility functions are additively separable and one of the terms is state-independent, then beliefs are uniquely identified. The main departure from existing literature is that beliefs are identified without imposing extra objective elements into the model.
Original language | English (US) |
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Pages (from-to) | 59-72 |
Number of pages | 14 |
Journal | Games and Economic Behavior |
Volume | 95 |
DOIs | |
State | Published - Jan 1 2016 |
Keywords
- Decision theory
- Menu choice
- Subjective states
ASJC Scopus subject areas
- Finance
- Economics and Econometrics