Chambers, Robert G; Grant, Simon; Polak, Ben; Quiggin, John - School of Economics, University of Queensland - 2011
The idea of representing choice under uncertainty as a trade-off between mean returns and some measure of risk or … uncertainty is fundamental to the analysis of investment decisions. In this paper, we show that preferences can be characterized … in this way, even in the absence of ob jective probabilities. We develop a model of uncertainty averse preferences that …