This paper shows that, for CEU preferences, the axioms consquentialism, state independenceand conditional certainty equivalent consistency under updating characterise a family of capacities,called Genralised Neo-Additive Capacities (GNAC). This family contains as special casesamong others...

In this paper, we consider a decision-maker who tries to learn the distribution ofoutcomes from previously observed cases. For each observed sequence of casesthe decision-maker predicts a set of priors expressing his beliefs about the underlyingprobability distribution. We impose a version of...

The paper examines the effects of ambiguity in regulation on the equilibriumallocation. Under ambiguous bailout policy, agents’ suffer from a lack of informationwith regards to the insolvency resolution method, which would bechosen by the regulator if a financial institution fails. In this...