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Extended Relative Maximum Likelihood Updating of Choquet Beliefs

Published 6 Sep 2021 in econ.TH | (2109.02597v1)

Abstract: Cheng(2021) proposes and characterizes Relative Maximum Likelihood (RML) updating rule when the ambiguous beliefs are represented by a set of priors. Relatedly, this note proposes and characterizes Extended RML updating rule when the ambiguous beliefs are represented by a convex capacity. Two classical updating rules for convex capacities, Dempster-Shafer (Shafer, 1976) and Fagin-Halpern rules (Fagin and Halpern, 1990) are included as special cases of Extended RML.

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