of the probability of a horse winning—longshots are overbet, while favorites are underbet. Neoclassical explanations of … misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory. …

contrast, uncertainty about the catastrophic threshold typically causes coordination to collapse. Whether the probability …, sustaining only modest cuts in emissions. These results are unaffected by uncertainty about the impact of catastrophe. By …

concept of temporary explosiveness is proposed as an empirical method for capturing this type of behavior. The application of …

some recipients are exposed to uncertainty. Although, under certainty almost all uninvolved participants distribute … resources equally, they exhibit remarkable heterogeneity in just allocations under uncertainty. Moreover, uninvolved … participants allocate on average less to recipients exposed to higher degrees of uncertainty and allocations are correlated with …

prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost …

circulation model. It also features Epstein-Zin utility and uncertainty about climate sensitivity that resolves after some time …

). Exogenous uncertainty over the size of the negotiated amount of water is introduced to capture the fact that water availability …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

driven by informational spillovers: uncertainty about the outcome of reform is reduced by learning from the experience of …

future utility when uncertainty increases over time. The more we know about the future welfare consequences of our (in …)actions, the more weight they receive. If uncertainty is endogenous to the decision process, the new rationale for discounting will …