Modeling agent's conditional preferences under objective ambiguity in Dempster-Shafer theory
We manage decisions under “objective” ambiguity by considering generalized Anscombe-Aumann acts, mapping states of the world to generalized lotteries on a set of consequences. A generalized lottery is modeled through a belief function on consequences, interpreted as a partially specified randomizing device. Preference relations on these acts are given by a decision maker focusing on different scenarios (conditioning events).