Midlands State University Library

Second-order ambiguous beliefs/

Nascimento, Leandro

Second-order ambiguous beliefs/ created by Leandro Nascimento and Gil Riella - Economic theory Volume 52, number 3 .

This paper axiomatizes models of second-order ambiguous beliefs in the original domain of preferences of Anscombe and Aumann (Ann Math Stat 34:199–205, 1963) by weakening the first-stage independence postulate. The models we propose include the second-order subjective expected utility (SOSEU) of Seo (Econometrica 77:1575–1605, 2009) as a particular case. We characterize the intersection of our models of second-order ambiguity with the canonical models of (first-order) ambiguity aversion and provide a further generalization of SOSEU by relaxing the completeness axiom

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Ambiguity--Incomplete preferences--Second-order beliefs

HB119 ECO