Title

Testable Implications of Subjective Expected Utility Theory

Author Info

Eduardo Zambrano, University of Notre DameFollow

Recommended Citation

Postprint version. Published in Games and Economic Behavior, Volume 53, Issue 2, November 1, 2005, pages 262-268.

NOTE: At the time of publication, the author Eduardo Zambrano was not yet affiliated with Cal Poly.

The definitive version is available at https://doi.org/10.1016/j.geb.2004.09.011.

Abstract

I show that the predictive content of the hypothesis of subjective expected utility maximization critically depends on what the analyst knows about the details of the problem a particular decision maker faces. When the analyst does not know anything about the agent's payoffs or beliefs and can only observe the sequence of actions taken by the decision maker any arbitrary sequence of actions can be implemented as the choice of an agent that solves some intertemporal utility maximization problem under uncertainty.

Disciplines

Economics

Copyright

2005 Elsevier Inc.