### Abstract

Suppose that an economic agent is (1-\varepsilon) \times 100% certain that uncertainty she faces is characterized by a particular probability measure, but that she has a fear that, with \varepsilon \times 100% chance, her conviction is completely wrong and she is left perfectly ignorant about the true measure in the present as well as in the future. This situation is often called " varepsilon -contamination of confidence." The purpose of this paper is to provide a simple set of behavioral axioms under which the decision-maker's preference is represented by the Choquet expected utility with the varepsilon -contamination of confidence.

Original language | English |
---|---|

Pages (from-to) | 333-340 |

Number of pages | 8 |

Journal | Economic Theory |

Volume | 27 |

Issue number | 2 |

DOIs | |

Publication status | Published - 2006 Feb |

Externally published | Yes |

### Fingerprint

### Keywords

- ε-contamination
- Choquet expected utility
- Representation theorem

### ASJC Scopus subject areas

- Economics and Econometrics

### Cite this

*Economic Theory*,

*27*(2), 333-340. https://doi.org/10.1007/s00199-004-0584-3

**An axiomatic approach to ε -contamination.** / Nishimura, Kiyohiko G.; Ozaki, Hiroyuki.

Research output: Contribution to journal › Article

*Economic Theory*, vol. 27, no. 2, pp. 333-340. https://doi.org/10.1007/s00199-004-0584-3

}

TY - JOUR

T1 - An axiomatic approach to ε -contamination

AU - Nishimura, Kiyohiko G.

AU - Ozaki, Hiroyuki

PY - 2006/2

Y1 - 2006/2

N2 - Suppose that an economic agent is (1-\varepsilon) \times 100% certain that uncertainty she faces is characterized by a particular probability measure, but that she has a fear that, with \varepsilon \times 100% chance, her conviction is completely wrong and she is left perfectly ignorant about the true measure in the present as well as in the future. This situation is often called " varepsilon -contamination of confidence." The purpose of this paper is to provide a simple set of behavioral axioms under which the decision-maker's preference is represented by the Choquet expected utility with the varepsilon -contamination of confidence.

AB - Suppose that an economic agent is (1-\varepsilon) \times 100% certain that uncertainty she faces is characterized by a particular probability measure, but that she has a fear that, with \varepsilon \times 100% chance, her conviction is completely wrong and she is left perfectly ignorant about the true measure in the present as well as in the future. This situation is often called " varepsilon -contamination of confidence." The purpose of this paper is to provide a simple set of behavioral axioms under which the decision-maker's preference is represented by the Choquet expected utility with the varepsilon -contamination of confidence.

KW - ε-contamination

KW - Choquet expected utility

KW - Representation theorem

UR - http://www.scopus.com/inward/record.url?scp=18144423188&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=18144423188&partnerID=8YFLogxK

U2 - 10.1007/s00199-004-0584-3

DO - 10.1007/s00199-004-0584-3

M3 - Article

AN - SCOPUS:18144423188

VL - 27

SP - 333

EP - 340

JO - Economic Theory

JF - Economic Theory

SN - 0938-2259

IS - 2

ER -