Pareto Optimal Allocations for Probabilistic Sophisticated Variational Preferences
43 Pages Posted: 14 Jul 2011 Last revised: 5 Oct 2011
Date Written: September 2011
Abstract
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
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