Probabilistic sophistication and multiple priors

Two well-known choice models, the maximin expected utility (MEU) model and the probabilistically sophisticated model were discussed to understand the extent to which the models coexisted. Results of the analysis showed that inside the standard subjective expected utility (SEU) model, such a coexistence was possible. A decision maker that was both probabilistically sophisticated and maximin expected utility had to be a subjective expected utility decision maker.