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Harsanyi. We prove an extension of the Purification Theorem for 2x2 normal form games. Our result implies that any Ellsberg …
Persistent link: https://www.econbiz.de/10011435989
. We also discuss the purification of equilibria in the spirit of Harsanyi. …
Persistent link: https://www.econbiz.de/10011806882
. We also discuss the purification of equilibria in the spirit of Harsanyi. …
Persistent link: https://www.econbiz.de/10011621734
Das amerikanische Politmagazin Foreign Policy befragte zwischen August und September 2012 insgesamt 62 bekannte US-Ökonomen, worin sie die Hauptursache für die schleppende Erholung des Arbeitsmarkts sehen. Am häufigsten genannt wurde Unsicherheit (31 Prozent). Was ist mit diesem Begriff...
Persistent link: https://www.econbiz.de/10010291289
This paper presents a new representation of preference orderings for the study of ambiguity-related decision-making. The central feature is a preference-based decomposition of subjective probabilities that provides information about inherent ambiguity. The probability decomposition is combined...
Persistent link: https://www.econbiz.de/10015375317
We investigate what it means for one act to be more ambiguous than another. The question is evidently analogous to asking what makes one prospect riskier than another, but beliefs are neither objective nor representable by a unique probability. Our starting point is an abstract class of...
Persistent link: https://www.econbiz.de/10011927995
Knightian uncertainty in climate sensitivity is analyzed in a two sectoral integrated assessment model (IAM), based on an extension of DICE. A representative household that expresses ambiguity aversion uses robust control to identify robust climate policy feedback rules that work well over IPCC...
Persistent link: https://www.econbiz.de/10005423921
This paper axiomatizes an intertemporal version of the Smooth Ambiguity decision model developed in Klibanoff, Marinacci, and Mukerji (2005). A key feature of the model is that it achieves a separation between ambiguity, identified as a characteristic of the decision maker's subjective beliefs,...
Persistent link: https://www.econbiz.de/10005181140
We examine a variety of preference-based definitions of ambiguous events in the context of the smooth ambiguity model.  We first consider the definition proposed in Klibanoff, Marinacci, and Mukerji (2005) based on the classic Ellsberg two-urn paradox (Ellsberg (1961)), and show that it...
Persistent link: https://www.econbiz.de/10008800184
Are foundations of models of ambiguity-sensitive preferences too flawed to be usefully applied to economic models?  Al-Najjar and Weinstein (2009) say such is indeed the case.  In this paper, first, we point out that many of the key arguments by Al-Najjar and Weinstein do not apply to quite a...
Persistent link: https://www.econbiz.de/10004999235