Grant, Simon; Özsoy, Hatice; Polak, Ben Probabilistic sophistication and stochastic monotonicity in the savage framework. (English) Zbl 1152.91415 Math. Soc. Sci. 55, No. 3, 371-380 (2008). Summary: M. J. Machina and D. Schmeidler [Econometrica 60, No. 4, 745-780 (1992; Zbl 0763.90012)] have shown that probabilistic sophistication can be obtained in a Savage setting without imposing expected utility by dropping Savage’s axiom P2 (sure-thing principle) and strengthening his axiom P4 (weak comparative probability). Their stronger axiom, however, embodies a degree of separability analogous to P2. In this note, we obtain probabilistic sophistication using Savage’s original axiom P4 and a weaker analog of Savage’s P2. MSC: 91B08 Individual preferences 91B70 Stochastic models in economics Keywords:subjective probability; probabilistic sophistication; stochastic monotonicity; sure-thing principle; cumulative dominance PDF BibTeX XML Cite \textit{S. Grant} et al., Math. Soc. Sci. 55, No. 3, 371--380 (2008; Zbl 1152.91415) Full Text: DOI References: [1] Grant, S.; Polak, B., Bayesian beliefs with stochastic monotonicity: an extension of machina and schmeidler, J. econ. theory, 130, 264-282, (2006) · Zbl 1141.91382 [2] Machina, M.; Schmeidler, D., A more robust definition of subjective probability, Econometrica, 60, 745-780, (1992) · Zbl 0763.90012 [3] Machina, M.; Schmeidler, D., Bayes without Bernoulli, J. econ. theory, 67, 106-128, (1995) · Zbl 0840.90014 [4] Sarin, R.; Wakker, P.P., Cumulative dominance and probabilistic sophistication, Math. soc. sci., 40, 191-196, (2000) · Zbl 0964.91010 [5] Savage, L.J., The Foundations of Statistics, Wiley, New York, 1954. Revised and enlarged, Dover Publications, New York, 1972. · Zbl 0055.12604 This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.