Randomization and dynamic consistency
(2015)
Journal Article
Eichberger, J., Grant, S., & Kelsey, D. (2016). Randomization and dynamic consistency. Economic Theory, 62(3), 547-566. https://doi.org/10.1007/s00199-015-0913-8
Rai¤a (1961) has suggested that ambiguity aversion will cause a strict preference for randomization. We show that dynamic consistency implies that individuals will be indi¤erent to ex ante randomizations. On the other hand, it is possible for a dynam... Read More about Randomization and dynamic consistency.