| Sinn, Hans-Werner (1980): A Rehabilitation of the Principle of Insufficient Reason. In: The Quarterly Journal of Economics, Vol. 94, No. 3: p. 493 |
Full text not available from 'Open Access LMU'.
DOI: 10.2307/1884581
External fulltext: http://dx.doi.org/10.2307/1884581
Abstract
It is shown that two of the axioms necessary for the expected utility rule imply the Principle of Insufficient Reason. Whenever a decision maker knows the possible states of the world, but completely lacks information about the plausibility of each single state, he has to behave as if all states occurred with the same objective probability, known with certainty. The result is applied to decision trees and used to solve a problem formulated by Savage in order to discredit the classical version of the Principle of Insufficient Reason.
| Item Type: | Journal article |
|---|---|
| Faculties: | Economics Economics > Chairs > Chair for Public Economics |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| ID Code: | 19914 |
| Deposited On: | 15. Apr 2014 08:54 |
| Last Modified: | 04. Nov 2020 13:01 |
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