Consequentialism and dynamic consistency in updating ambiguous beliefs

Takao Asano, Hiroyuki Kojima

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)1-28
Number of pages28
JournalEconomic Theory
DOIs
Publication statusAccepted/In press - Apr 23 2018

Fingerprint

Consequentialism
Dynamic consistency
Choquet expected utility
Axiomatization
Axioms
Comonotonicity

Keywords

  • Choquet expected utility
  • Conditional comonotonicity
  • Conditional preferences
  • Consequentialism
  • Dempster–Shafer updating rule
  • Dynamic consistency
  • Fagin–Halpern updating rule
  • Naive Bayes’ updating rule

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Consequentialism and dynamic consistency in updating ambiguous beliefs. / Asano, Takao; Kojima, Hiroyuki.

In: Economic Theory, 23.04.2018, p. 1-28.

Research output: Contribution to journalArticle

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