SFB 303 Discussion Paper No. B - 340

Author: Ewerhart, Christian
Title: Caution in Generic Decisions Situations
Abstract: It is shown that a Bayesian decision maker is cautious in generic decision situations. Formally, we prove that in almost all decisions under uncertainty every Bayesian mixed best reply to a subjective prior as actually a best reply to prior that gives positive probability to every possible state of the world. Examples of game theoretic applications are given.
Keywords: Bayesian decision maker, generic decision situations
JEL-Classification-Number:
Creation-Date: November 1995
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