25 Pages Posted: 26 Apr 2012 Last revised: 20 May 2013
Date Written: March 25, 2013
We derive necessary and sufficient conditions for data sets composed of state-contingent prices and consumption to be consistent with two prominent models of decision making under ambiguity: variational preferences and smooth ambiguity. The revealed preference conditions for the maxmin expected utility and subjective expected utility models are characterized as special cases.
Keywords: ambiguity, revealed preference, maxmin, variational preferences, expected utility, smooth, uncertainty
JEL Classification: D1, D8
Suggested Citation: Suggested Citation