We conduct a laboratory experiment of second-price sealed bid auctions of a common value good with two bidders. Bidders …

assets - and Markowitz - who advocates diversification across assets. We rely on the concepts of ambiguity and ambiguity … degree of ambiguity across assets, and (ii) the standard deviation of the estimate of expected return on each asset. If the … standard deviation of the expected return estimate and the difference between the ambiguity about familiar and unfamiliar …

asset returns. Our contribution is to develop a framework that allows for ambiguity about the joint distribution of returns … for all stocks being considered for the portfolio, and also for different levels of ambiguity for the marginal … international equity returns. The calibration shows that when the overall ambiguity about the joint distribution of returns is high …

full information and there is also a role for ambiguity in the setting of monetary policy. Both these effects of asymmetric …

transparency and constructive ambiguity. The first two show that transparency reduces the variability of inflation and the output … preferences for all circumstances, in line with the hypothesis of constructive ambiguity, we find that both the levels and the … may have been exploiting constructive ambiguity more than a lack of transparency. …

political party may deliberately choose to recruit only mediocre politicians, in spite of the fact that it could afford to … recruit better individuals who would like to become politicians. We argue that this finding may contribute to explain the …