Definition:Subjective Unknown

Definition

An subjective unknown is an event which does not have a well-defined objective probability of occurring.

An subjective unknown is appropriately modelled by means of a state-variable model.

Examples

Examples of subjective unknowns include:

• The result of a future sporting event

• The winner in a horse race (hence the term horse lottery).

Also known as

Some sources refer to a subjective unknown as an uncertainty.

A gamble on an subjective unknown can be seen referred to as a horse lottery.

Also see

• Definition:Subjective Unknown

Sources

• 1991: Roger B. Myerson: Game Theory ... (previous) ... (next): $1.2$ Basic Concepts of Decision Theory