Correlation concern

Ellis, A.ORCID logo (2025). Correlation concern. Journal of Economic Theory, 228, https://doi.org/10.1016/j.jet.2025.106064
Copy

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.

picture_as_pdf

subject
Published Version
Creative Commons: Attribution 4.0

Download

Export as

EndNote BibTeX Reference Manager Refer Atom Dublin Core JSON Multiline CSV
Export