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) |
|---|---|
| Pages (from-to) | 59-72 |
| Number of pages | 14 |
| Journal | Games and Economic Behavior |
| Volume | 95 |
| DOIs | |
| State | Published - Jan 1 2016 |
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Keywords
- Decision theory
- Menu choice
- Subjective states
ASJC Scopus subject areas
- Economics and Econometrics
- Finance
Cite this
Identifying subjective beliefs in subjective state space models. / Schenone, Pablo.
In: Games and Economic Behavior, Vol. 95, 01.01.2016, p. 59-72.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Identifying subjective beliefs in subjective state space models
AU - Schenone, Pablo
PY - 2016/1/1
Y1 - 2016/1/1
N2 - 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.
AB - 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.
KW - Decision theory
KW - Menu choice
KW - Subjective states
UR - http://www.scopus.com/inward/record.url?scp=84954145996&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84954145996&partnerID=8YFLogxK
U2 - 10.1016/j.geb.2015.12.007
DO - 10.1016/j.geb.2015.12.007
M3 - Article
AN - SCOPUS:84954145996
VL - 95
SP - 59
EP - 72
JO - Games and Economic Behavior
JF - Games and Economic Behavior
SN - 0899-8256
ER -