Paolo Ghirardato (Collegio Carlo Alberto) and Daniele Pennesi
October 29 @ 12:45
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“A General Theory of Subjective Mixtures”
We provide a framework for constructing subjective mixtures which requires neither the Certainty Independence nor the Monotonicity axiom, replacing them with much weaker “local” properties, and which –as we show by means of several examples– can thus serve as a purely subjective foundation to most of the recent preference models which employ an Anscombe-Aumann setting. The scope of our framework is further demonstrated by providing a fully subjective axiomatization of Recursive Variational Preferences, and also by discussing how subjective mixtures can be employed in modelling choice between menus of consequences.