Abstract
Ignorance about the comparative likelihood of events is reflected in incompleteness of an agent's preferences over bets. We argue that determinate rational choice is still possible if optimal choice is understood as context-dependent best compromise. An axiomatic characterization of such a choice rule is described for the special case of situations of complete ignorance (maximally incomplete preferences) which can be viewed as ``reduced forms'' of general decision problems under partial ignorance.
Keywords. Incomplete preference, ignorance, robustness, context-dependent choice, non-informative priors.
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Authors addresses:Department of Economics
E-mail addresses:
| Klaus Nehring | kdnehring@ucdavis.edu |
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