Abstract: Purpose – In many real-life situations, we do not know the exact values of the expected gain corresponding to different possible actions, we only have lower and upper bounds on these gains – i.e., in effect, intervals of possible gain values. The purpose of this study is to describe all possible ways to make decisions under such interval uncertainty.
Design/methodology/approach – The authors used both natural invariance and additivity requirements.
Findings – The authors demonstrated that natural requirements – invariance or additivity – led to a two-parametric family of possible decision-making strategies.
Originality/value – This is a first description of all reasonable strategies for decision-making under interval uncertainty – strategies that satisfy natural requirements of invariance or additivity.
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