@article{Gilboa:275721, recid = {275721}, author = {Gilboa, Itzhak and Maccheroni, Fabio and Marinacciand, Massimo and Schmeidler, David}, title = {Objective and Subjective Rationality in a Multiple Prior Model}, address = {2009-06}, number = {2123-2018-5073}, series = {2-09}, pages = {54}, year = {2009}, abstract = {A decision maker is characterized by two binary relations. The first reflects decisions that are rational in an “objective” sense: the decision maker can convince others that she is right in making them. The second relation models decisions that are rational in a “subjective” sense: the decision maker cannot be convinced that she is wrong in making them. We impose axioms on these relations that allow a joint representation by a single set of prior probabilities. It is “objectively rational” to choose f in the presence of g if and only if the expected utility of f is at least as high as that of g given each and every prior in the set. It is “subjectively rational” to choose f rather than g if and only if the minimal expected utility of f (relative to all priors in the set) is at least as high as that of g.}, url = {http://ageconsearch.umn.edu/record/275721}, doi = {https://doi.org/10.22004/ag.econ.275721}, }