Adequate Moods for non-EU Decision Making in a Sequential Framework: A synthetic DiscussionReport as inadecuate




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1 CIRED - Centre International de Recherche sur l-Environnement et le Développement

Abstract : In a dynamic sequential framework, departures from the independence axiom IND are reputed to induce violations of dynamic consistency DC, which may in turn have undesirable normative consequences. This result thus questions the normative acceptability of non expected-utility non-EU models, which precisely relax IND. This paper pursues a twofold objective. The main one is to discuss the normative conclusion: usual arguments linking violations of DC to departures from IND are shown to be actually based on specific but usually remaining implicit assumptions which may rightfully be released, so that it is actually possible for a non-EU maximizer to be dynamically consistent and thus avoid normative difficulties. The second objective is to introduce a kind of -reality principle- through two other evaluation criteria in order to mitigate the normative requirement when examining adequate moods for non-EU decision making.

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Keywords : Sequential Decisions Decision Trees Dynamic Consistency Non Expected Utility Myopia Money Pump Consequentialism Sophisticated Behaviour Behavioural Consistency Resolute Behaviour

Mots-clés : choix séquentiels cohérence dynamique modèles non-EU





Author: Nathalie Etchart-Vincent -

Source: https://hal.archives-ouvertes.fr/



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