Correlation concern
Ellis, A.
(2025).
Correlation concern.
Journal of Economic Theory,
228,
https://doi.org/10.1016/j.jet.2025.106064
In many choice problems, the interaction between several distinct variables determines the payoff of each alternative. I propose and axiomatize a model of a decision maker who recognizes that she may not accurately perceive the correlation between these variables, and who takes this into account when making her decision. She chooses as if she calculates each alternative's expected outcome under multiple possible correlation structures, and then evaluates it according to the worst expected outcome.
| Item Type | Article |
|---|---|
| Copyright holders | © 2025 The Author(s) |
| Departments | LSE > Academic Departments > Economics |
| DOI | 10.1016/j.jet.2025.106064 |
| Date Deposited | 05 Aug 2025 |
| Acceptance Date | 01 Aug 2025 |
| URI | https://researchonline.lse.ac.uk/id/eprint/129044 |
ORCID: https://orcid.org/0000-0002-7552-4832
