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  SDDM-TEA 

static and Dynamic Decision Making under Uncertainty:
Theory and Applications 


Principal Investigator:  Simone Cerreia-Vioglio 

Abstract

The goal of this project is to develop a model of random choice where the randomization is due not to mistakes or changes in utility but because sub ects are choosing to randomize. This is in line with the interpretation of random choice suggested in Machina (1985). We proceed axiomatically by positing restrictions on behavior and derive a model that is equivalent to these restrictions. In our model subjects choose to randomize following non-Expected Utility preferences as in the Cautious Expected Utility model of Cerreia-Vioglio Dillenberger Ortoleva (2014). Intuitively subjects are unsure about how to evaluate each lottery and are pessimistic in evaluating them; they prefer to 'hedge' between available options and thus choose to randomize.

Published papers

On the Equality of Clarke and Greenberg-Pierskalla Differentials, with Fabio Maccheroni, Massimo Marinacci, and Luigi Montrucchio, Journal of Convex Analysis

A Canon of Probabilistic Rationality, with Per Olov Lindberg, Fabio Maccheroni, Massimo Marinacci, and Aldo Rustichini, Journal of Economic Theory

Ambiguity Aversion and Wealth Effects, with Fabio Maccheroni and Massimo Marinacci, Journal of Economic Theory

Sources of Uncertainty and Subjective Prices, with Veronica Cappelli, Fabio Maccheroni, Stefania Minardi, and Massimo Marinacci, Journal of the European Economic Association, 19, 872-912, 2021.

An Explicit Representation for Disappointment Aversion and Other Betweenness Preferences, with David Dillenberger and Pietro Ortoleva, Theoretical Economics, 15, 1509-1546, 2020.

A Behavioral Characterization of the Drift Diffusion Model and its Multi-Alternative Extension for Choice under Time Pressure, with Carlo Baldassi, Fabio Maccheroni, Massimo Marinacci, and Marco Pirazzini, Management Science, 66, 5075-5093, 2020.

Rational Preference and Rationalizable Choice, with Alfio Giarlotta, Salvatore Greco, Fabio Maccheroni, and Massimo Marinacci, Economic Theory, 69, 61-105, 2020.

Deliberately Stochastic, with David Dillenberger, Pietro Ortoleva, and Gil Riella, American Economic Review, 109, 2425-2445, 2019.

A Characterization of Probabilities with Full Support in Metric Spaces and its Implications for Laplace Method, with Fabio Maccheroni and Massimo Marinacci, Journal of Optimization Theory and Applications, 181, 470-478, 2019.

Orthogonal Decompositions in Hilbert A-Modules, with Fabio Maccheroni and Massimo Marinacci, Journal of Mathematical Analysis and Applications, 470, 846-875, 2019.

Commutativity, Comonotonicity, and Choquet Integration of Self-adjoint Operators, with Fabio Maccheroni, Massimo Marinacci, and Luigi Montrucchio, Reviews in Mathematical Physics, 30, 10, 1850016, 2018.
 

Working Papers

Making Decisions under Model Misspecification, with Lars Peter Hansen, Fabio Maccheroni, and Massimo Marinacci.

Dynamic Opinion Aggregation: Long-Run Stability and Disagreement, with Roberto Corrao and Giacomo Lanzani.

Equilibria of Nonatomic Anonymous Games, with Fabio Maccheroni and David Schmeidler.

The Rational Core of Preference Relations, with Efe Ok.

Law of Demand and Stochastic Choice, with Fabio Maccheroni, Massimo Marinacci, and Aldo Rustichini.

Multinomial Logit Processes and Preference Discovery: Inside and Outside the Black Box, with Fabio Maccheroni, Massimo Marinacci, and Aldo Rustichini.

 



Last updated October 29, 2021