Are probabilities used in markets?

Authors
Epstein, LG
Citation
Lg. Epstein, Are probabilities used in markets?, J ECON THEO, 91(1), 2000, pp. 86-90
Citations number
7
Categorie Soggetti
Economics
Journal title
JOURNAL OF ECONOMIC THEORY
ISSN journal
00220531 → ACNP
Volume
91
Issue
1
Year of publication
2000
Pages
86 - 90
Database
ISI
SICI code
0022-0531(200003)91:1<86:APUIM>2.0.ZU;2-4
Abstract
Working in a complete-markets setting, a property of asset demands is ident ified that thai is inconsistent with the investor's preference being based on probabilities. In this way, a market counterpart of the Ellsberg Paradox is provided. Journal Economic Literature Classification Numbers: D00. D80. D81. (C) 2000 Academic Press.