Eichberger, Jürgen; Grant, Simon; Kelsey, David - Business School, University of Exeter - 2014
Raiffa (1961) has suggested that ambiguity aversion will cause a strict preference for randomization. We show that … for a dynamically-consistent ambiguity averse preference relation to exhibit a strict preference for some ex post … randomizations. We argue that our analysis throws some light on the recent debate about paradoxes for the smooth model of ambiguity …