Fiche du document
Date
28 décembre 2020
Discipline
Type de document
Périmètre
Identifiant
- 2012.14557
Source
Collection
Organisation
Mots-clés
Economics - Theoretical Economics
Résumé
We propose a model of incomplete \textit{twofold multiprior preferences}, in which an act $f$ is ranked above an act $g$ only when $f$ provides higher utility in a worst-case scenario than what $g$ provides in a best-case scenario. The model explains failures of contingent reasoning, captured through a weakening of the state-by-state monotonicity (or dominance) axiom. Our model gives rise to rich comparative statics results, as well as extension exercises, and connections to choice theory. We present an application to second-price auctions.