NO-BETTING-PARETO DOMINANCE

We argue that the notion of Pareto dominance is not as compelling in the presence of uncertainty as it is under certainty. In particular, voluntary trade based on differences in tastes is commonly accepted as desirable, because tastes cannot be wrong. By contrast, voluntary trade based on incompatib...

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Bibliographic Details
Published in:Econometrica 2014-07, Vol.82 (4), p.1405-1442
Main Authors: Gilboa, Itzhak, Samuelson, Larry, Schmeidler, David
Format: Article
Language:English
Subjects:
Agency theory
Allocative efficiency
Belief & doubt
Beliefs
Betting
Decision analysis
Dominance
Economic dominance
Economic theory
Endowments
Expected utility
Gambling
International trade
Mistaken beliefs
Pareto dominance
Pareto efficiency
Pareto optimum
Preferences
speculation
Spreading risk
Studies
Trade
Trade finance
Uncertainty
Utility functions
Citations: Items that cite this one
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