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Departamento de Economía
Documentos de Trabajo
Rational Evaluation Of Actions Under Complete Uncertainty
Ritxar Arlegi
AbstractThis work analyzes the problem of individual choice of ac-
tions under complete uncertainty. In this context, each action consists of
a set of dierent possible outcomes with no probability distribution as-
sociated with them. The work examines and denes a class of choice pro-
cedures in which: a): the evaluation of sets (actions) is element-induced;
and b): certain assumption of rationality, which is an adaptation of Sen's
condition, is satised. Some results of characterization show that dif-
ferent well-known rules can be reinterpreted as particular cases within
the dened class, each of them responding to dierent attitudes towards
uncertainty by the agent.
Keywords: Choice Under Complete Uncertainty. Element-induced Rules.
JEL Code: D81.
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