233024 (E61) An analysis of the equity implications of recent taxation changes to Australian superannuation: Knox D.M., Atkinson M.E., Donath S.The University of Melbourne, Centre for Actuarial Studies, Research paper No. 53, March 1998

• Publisher: Elsevier Science
• Year: 1998
• Tongue: English
• Weight: 84 KB
• Volume: 23
• Category: Article
• ISSN: 0167-6687
• DOI: 10.1016/s0167-6687(98)90051-8

✦ Synopsis

probabilities cannot be assigned to events. In the absence of probabilities, difficulties arise in the interpretation of likelihoods of events. In this paper the authors introduce a notion of revealed likelihood that is defined entirely in terms of preferences and that does not require the existence of (subjective) probabilities. The proposal is that decision weights rather than capacities are more suitable measures of revealed likelihood in rankdependent expected utility models and prospect theory. Applications of the proposal to the updating of beliefs and to the description of attitudes towards ambiguity are presented.