Reconciling Savage's and Luce's modeling of uncertainty: The best of both worlds
This paper recommends using mosaics, rather than (σ-)algebras, as collections of events in decision under uncertainty. We show how mosaics solve the main problem of Savage's (1954) uncertainty model, a problem pointed out by Duncan Luce.
Using mosaics, we can connect Luce's modeling of uncertainty with Savage's. Thus, the results and techniques developed by Luce and his co-authors become available to currently popular theories of decision making under uncertainty and ambiguity.
|Keywords||Ambiguity, Conditional decisions, Expected utility, Mosaics, State space, Uncertainty|
|Persistent URL||dx.doi.org/10.1016/j.jmp.2015.10.007, hdl.handle.net/1765/86419|
|Series||ERIM Top-Core Articles|
|Journal||Journal of Mathematical Psychology|
Chai, J, Li, C, Wakker, P.P, Wang, T.V, & Yang, J. (2016). Reconciling Savage's and Luce's modeling of uncertainty: The best of both worlds. Journal of Mathematical Psychology, 75, 10–18. doi:10.1016/j.jmp.2015.10.007