TY - JOUR
T1 - Consequentialism and dynamic consistency in updating ambiguous beliefs
AU - Asano, Takao
AU - Kojima, Hiroyuki
N1 - Funding Information:
We acknowledge an anonymous reviewer and the co-editor, Mark Machina, whose comments improve this paper substantially. We are grateful to Youichiro Higashi, Hidetoshi Komiya, Hiroyuki Ozaki, Shin?ichi Suda, Masayuki Yao, and participants at Nagoya University, Keio University, and China Meeting of Econometric Society 2016 (Chengdu, China). This research is financially supported by the JSPS KAKENHI Grant Numbers 17K03806, 16K03558, 26380240, 25380239, and 23000001, and the Joint Research Program of KIER.
Funding Information:
We acknowledge an anonymous reviewer and the co-editor, Mark Machina, whose comments improve this paper substantially. We are grateful to Youichiro Higashi, Hidetoshi Komiya, Hiroyuki Ozaki, Shin’ichi Suda, Masayuki Yao, and participants at Nagoya University, Keio University, and China Meeting of Econometric Society 2016 (Chengdu, China). This research is financially supported by the JSPS KAKENHI Grant Numbers 17K03806, 16K03558, 26380240, 25380239, and 23000001, and the Joint Research Program of KIER.
PY - 2019/7/1
Y1 - 2019/7/1
N2 - By proposing the notions of upper-constrained dynamic consistency and lower-constrained dynamic consistency that are weaker axioms than dynamic consistency, this paper axiomatizes the Dempster–Shafer updating rule and naive Bayes’ updating rule within the framework of Choquet expected utility. Based on the notion of conditional comonotonicity, this paper also provides an axiomatization of consequentialism under Choquet expected utility. Furthermore, based on the idea of the mean-preserving rule, this paper provides a unified approach for distinguishing capacity updating rules (the Dempster–Shafer updating rule, naive Bayes’ updating rule, and Fagin–Halpern updating rule) according to the degree of dynamic consistency.
AB - By proposing the notions of upper-constrained dynamic consistency and lower-constrained dynamic consistency that are weaker axioms than dynamic consistency, this paper axiomatizes the Dempster–Shafer updating rule and naive Bayes’ updating rule within the framework of Choquet expected utility. Based on the notion of conditional comonotonicity, this paper also provides an axiomatization of consequentialism under Choquet expected utility. Furthermore, based on the idea of the mean-preserving rule, this paper provides a unified approach for distinguishing capacity updating rules (the Dempster–Shafer updating rule, naive Bayes’ updating rule, and Fagin–Halpern updating rule) according to the degree of dynamic consistency.
KW - Choquet expected utility
KW - Conditional comonotonicity
KW - Conditional preferences
KW - Consequentialism
KW - Dempster–Shafer updating rule
KW - Dynamic consistency
KW - Fagin–Halpern updating rule
KW - Naive Bayes’ updating rule
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U2 - 10.1007/s00199-018-1121-0
DO - 10.1007/s00199-018-1121-0
M3 - Article
AN - SCOPUS:85045842082
VL - 68
SP - 223
EP - 250
JO - Economic Theory
JF - Economic Theory
SN - 0938-2259
IS - 1
ER -