Bayes contingent plans
Article Abstract:
A contingent plan that completely satisfies an agent's plan about which act to perform if various possible sequences of observations were the basis for choosing an act is examined. For a contingent plan to be rationalized by maximization of conditional expected utility, there must be an intuitively natural consistency condition for such plans. Chew's (1983) weighted-utility theory, one alternative theory of choice under uncertainty, does not imply that contingent plans will generally meet the consistency condition, while Savage's (1954, 1972) minimax theory does entail this condition, at least for single-valued plans.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1996
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Exclusive vs independent agents: a separating equilibrium approach
Article Abstract:
A separating equilibrium explanation is developed for a system of independent insurance agents.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1999
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