Measuring Belief and Risk Attitude

Sven Neth
(University of California, Berkeley)

Ramsey (1926) sketches a proposal for measuring the subjective probabilities of an agent by their observable preferences, assuming that the agent is an expected utility maximizer. I show how to extend the spirit of Ramsey's method to a strictly wider class of agents: risk-weighted expected utility maximizers (Buchak 2013). In particular, I show how we can measure the risk attitudes of an agent by their observable preferences, assuming that the agent is a risk-weighted expected utility maximizer. Further, we can leverage this method to measure the subjective probabilities of a risk-weighted expected utility maximizer.

In Lawrence S. Moss: Proceedings Seventeenth Conference on Theoretical Aspects of Rationality and Knowledge (TARK 2019), Toulouse, France, 17-19 July 2019, Electronic Proceedings in Theoretical Computer Science 297, pp. 354–364.
Published: 19th July 2019.

ArXived at: http://dx.doi.org/10.4204/EPTCS.297.22 bibtex PDF
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