| Belief Dependent Utility (1996) | |||||||||||||
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| . We study preferences over Savage acts where the decision maker may assign extremely low probability to some states and some of the consequences may be extreme. In particular we are interested in preferences which exhibit indierence among acts which dier only in extremely unlikely states except if extreme consequences are involved. These preferences are belief dependent in that preferences over consequences depend on the probability assigned to the state in which they occur, being coarser' in the extremely unlikely states. We characterize such preferences as those which can be obtained as a limit of a sequence of preferences with xed, state-independent utility on consequences and varying positive non-innitesimal probability, the probability of the unlikely states going to zero. Keywords: Nonstandard and lexicographic utility. Introduction This paper studies preferences over Savage acts (from states to consequences) where the decision maker may assign extremely low probabi... | |||||||||||||
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