Pareto Optimal Allocations for Probabilistic Sophisticated Variational Preferences
43 Pages Posted: 14 Jul 2011 Last revised: 5 Oct 2011
Date Written: September 2011
We prove the existence of Pareto optimal allocations within sets of acceptable allocations when decision makers have probabilistic sophisticated variational preferences defined on random endowments in L1.
Keywords: Pareto optimal allocations, variational preferences, probabilistic sophis- tication, ambiguity aversion, weighted sup-convolution optimization problems
JEL Classification: D81, D86
Suggested Citation: Suggested Citation