Document Type
Discussion Paper
Publication Date
6-1-2008
CFDP Number
1667
CFDP Pages
9
Abstract
We characterize, in the framework for variational preferences, the affective decision making model of choice under risk and uncertainty introduced by Bracha and Brown (2007). This characterization (i) provides a rigorus decision-theoretic foundation for affective decision making, (ii) offers an axiomatic explanation for ambiguity-seeking in the Ellsberg Paradox and (iii) suggests a dual representation of ADM games in terms of the Legendre-Fenchel conjugate.
Recommended Citation
Bracha, Anat and Brown, Donald J., "Affective Decision Making and the Ellsberg Paradox" (2008). Cowles Foundation Discussion Papers. 1974.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1974