Aggregating Tastes, Beliefs, and Attitudes Under Uncertainty

27 Pages Posted: 1 Aug 2014 Last revised: 25 Sep 2014

See all articles by Eric Danan

Eric Danan

University of Cergy-Pontoise

Thibault Gajdos

Aix-Marseille University - Aix-Marseille School of Economics

Brian Hill

HEC Paris - Economics & Decision Sciences; CNRS

Jean-Marc Tallon

Paris School of Economics

Date Written: July 20, 2014

Abstract

We provide possibility results on the aggregation of beliefs and tastes for Monotone, Bernoullian and Archimedian preferences of Cerreia-Vioglio, Ghirardato, Maccheroni, Marinacci, and Siniscalchi (2011). We propose a new axiom, Unambiguous Pareto Dominance, which requires that if the unambiguous part of individuals’ preferences over a pair of acts agree, then society should follow them. We characterize the resulting social preferences and show that it is enough that individuals share a prior to allow non dictatorial aggregation. A further weakening of this axiom on common-taste acts, where cardinal preferences are identical, is also characterized. It gives rise to a set of relevant priors at the social level that can be any subset of the convex hull of the individuals’ sets of relevant priors. We then apply these general results to the Maxmin Expected Utility model, the Choquet Expected Utility model and the Smooth Ambiguity model. We end with a characterization of the aggregation of ambiguity attitudes.

Keywords: Preference Aggregation, Social Choice, Uncertainty

JEL Classification: D71, D81

Suggested Citation

Danan, Eric and Gajdos, Thibault and Hill, Brian and Tallon, Jean-Marc, Aggregating Tastes, Beliefs, and Attitudes Under Uncertainty (July 20, 2014). HEC Paris Research Paper No. ECO/SCD-2014-1057. Available at SSRN: https://ssrn.com/abstract=2468809 or http://dx.doi.org/10.2139/ssrn.2468809

Eric Danan

University of Cergy-Pontoise ( email )

33 Boulevard du Port
Cergy-Pontoise Cedex, Cedex 95011
France

Thibault Gajdos

Aix-Marseille University - Aix-Marseille School of Economics ( email )

2 rue de la Charité
Marseille, 13236
France

Brian Hill (Contact Author)

HEC Paris - Economics & Decision Sciences ( email )

Paris
France

CNRS ( email )

3, rue Michel-Ange
Paris, 75794
France

Jean-Marc Tallon

Paris School of Economics ( email )

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