De Castro, Luciano I.; Chateauneuf, Alain - 2011
What is the effect of ambiguity aversion on trade? Although in a Bewley's model ambiguity aversion always lead to less … aversion implies less trade, for a very general class of preferences. The reduction in trade caused by ambiguity aversion can … trade, in other models this is not always true. However, we show that if the endowments are unambiguous then more ambiguity …