Edi Karni

Edi Karni

Scott and Barbara Black Professor of Economics

Contact Information

Research Interests: Economics of Uncertainty and Information, Decision Theory, Microeconomic Theory

Education: PhD, University of Chicago

My research focuses on the study of individual decision making under uncertainty, the foundations of Bayesian decision making, the representation of beliefs by subjective probabilities, mechanism designs and incentive contracts, and the ethical meaning of utilitarianism

Recent Papers

"Decisions and Discovery"

"Stochastic Choice Functions and Irresolute Choice Behavior"

"Ambiguity Aversion, Risk Aversion and the Weight of Evidence,"

"Impartiality and Relative Utilitarianism," Social Choice and Welfare, 2024

"Preventive-Service Fraud in Credence Good Markets," Economic Theory, 2023

"Irresolute Choice Behavior," International Journal of Economic Theory, 2023

"Comparative Incompleteness: Measurement, Behavioral Manifestations and Elicitation," Journal of Economic Behavior and Organization, 205, 2023

"A Theory-Based Decision Model," Journal of Economic Theory, 2022

“Hybrid Decision Model and the Ranking of Experiments,” Journal of Mathematical Economics 101, (2022),

"Incomplete Risk Attitudes and Random Choice Behavior: An Elicitation Mechanism," Theory and Decision, 2021

"Weighted Utility Theory with Incomplete Preferences", Mathematical Social Sciences, 113, June 2021.

"On the Indeterminacy of the Representation of Beliefs by Probabilities", Economics Letters, 196, November 2020.

"Probabilistically Sophisticated Choice: An Alternative Axiomatization", Revue Economique, 71, (2020), 307-312.

"Competitive Equilibrium Fraud in Markets for Credence-Goods" Journal of Mathematical Economics

"Probabilisitic Sophistication without Completeness" Journal of Mathematical Economics, 89, (2020), 8-13.

"Reverse Bayesianism: A Generalization" (with Marie-Louise Viero and Quitze Valenzuela-Stookey). The B.E. Journal of Theoretical Economics (forthcoming)

"The Reasoner Interview", The Reasoner, Vol 11, (2017), No. 11.

"A Mechanism for Eliciting Second-Order Beliefs and Inclination to Choose", American Economic Journal, Microeconomics 10 (2018) 275-285.

"An Expected Utility Theory for State-Dependent Preferences", Theory and Decision (2016) 81; 467-478.

"A Mechanism for the Elicitation of Second-Order Beliefs and Subjective Information Structures", Economic Theory 69 (2020) 217-232.

"Ambiguity and Nonexpected Utility", Handbook of Game Theory with Economic Applications Volume 4. H. Peyton Young and Shmuel Zamir (eds), Chapter 17.

"States of Nature and the Nature of States", Economics and Philosophy 33 (2017) 73-90.

"A Theory of Stochastic Choice under Uncertainty", Journal of Mathematical Economics, Vol. 63, (2016):164-173.

"Continuity, Completeness, Betweenness and Cone-Monotonicity", Mathematical Social Sciences, Vol. 74 (2015).

"Awareness of Unawareness: A Theory of Decision Making in the Face of Ignorance", Journal of Economic Theory, Volume 168 (March, 2017).

“A theory of Bayesian decision making with action-dependent subjective probabilities", Economic Theory, Vol. 48 (September, 2011):125-146.

“On the conjunction fallacy in probability judgment: New experimental evidence regarding Linda", Games and Economic Behavior, Vol. 68, No. 2 (2010): 551-556.

"A Mechanism for Eliciting Probabilities", Econometrica, Vol. 77, No. 2 (March, 2009): 603-606.

"Probabilistic Sophistication and Reverse Bayesianism", Journal of Risk and Uncertainty, 50 (2015): 189-208. 

"Familiarity Breeds Completeness", Economic Theory, Vol. 56, No. 1 (May, 2014): 109-124.

"Reverse Bayesianism": A Choice-Based Theory of Growing Awareness, American Economic Review, Vol. 103 (2013): 2790-2810.

"Ambiguity Attitudes and Social Interactions: An Experimental Investigation", Journal of Risk and Uncertainty, Vol. 46 (2013), 1-25.

"Expected Multi-Utility Representations", Mathematical Social Sciences, Vol. 64 (2012), 242-246.

"Subjective Expected Utility with Incomplete Preferences", Econometrica, Vol. 81, No. 1 (January, 2013): 255--284.

"Axiomatic Foundations of Expected Utility and Subjective Probability", In: Mark J. Machina, W. Kip Viscusi, editors, Handbook of the Economics of Risk and Uncertainty, Vol. 1 (2014), Oxford: North Holland.

"Bayesian Decision Theory with Action-Dependent Probabilities and Risk-Attitudes", Economic Theory, Vol. 53 (2013): 335-356.

"Helping Patients and Physicians Reach Individualized Medical Decisions: Theory and Application to Prenatal Diagnostic Testing", Theory and Decision, Vol. 76 (2014): 451-467.

"Continuity, Completeness and the Definition of Weak Preferences", Mathematical Social Sciences, Vol. 62 (2011): 123-125.

"Red Herrings: Some Thoughts on the Meaning of Zero-Probability Events and Mathematical Modeling", Economic Letters, Vol. 107 (2010): 134-135.

"Subjective Probabilities on a State Space", American Economic Journal: Microeconomics, Vol. 3 (November, 2011): 172--185.

"A Theory of Medical Decision Making under Uncertainty", Journal of Risk and Uncertainty, Vol. 39 (June, 2009): 1--16.

Economics 615 -- Mathematical Methods in Economics I:
This graduate course covers some topics in real analysis and static optimization theory. Topics include: Sets and operations on sets; topological concepts in metric spaces; linear spaces and convex analysis; nonlinear programming.

Economics 611 -- Economics of Uncertainty:
This graduate course explores theories of individual decision making under uncertainty. Topics covered include: the foundations of subjective expected utility theory; the theory of risk aversion; the theory of stochastic dominance; nonexpected utility theories. The emphasis in this course is on theory, the implications of the theoretical concepts and ideas, however, are illustrated by application to portfolio selection theory and insurance economics.

Economics 612 -- Economics of Information:
This graduate course provides an economic analysis of economic institutions designed to mitigate the welfare loss associated with disincentives in presence of asymmetric information. Topics covered include: the theory of contracts in the presence of moral hazard; equilibrium analysis in the presence of adverse selection ; the theory of auctions.

Obituary: David Schmeidler’s Contributions to Decision Theory,Theory and Decision (2022), 219–235.