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In this article we study the effect of uncertainty on an entrepreneur who must choose the capacity of his business …
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The concept of Ambiguity designates those situations where the information available to the decision maker is …-expected utility models hanging on a shaky ground. In particular, it leaves unanswered basic questions such as: (1) Does Ambiguity … Utility (SEU) in the presence of Ambiguity?, and (4) If so, what kind of behavior should emerge in the presence of Ambiguity …
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probabilities on the new states. The agents in the economy are classified with respect to their attitude towards this Ambiguity: the … financiers are (locally) Ambiguity-seeking while the consumers are Ambiguity-averse. An entrepreneur and a financier come … contracting problem does not fall within the standard theory due to the presence of Ambiguity (on the financier’s side) and to the …
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We provide a survey of the literature on ranking sets of objects. The interpretations of those set ranking include those employed in the theory of choice under complete uncertianty, rankings of opportunity sets, set rankings that appear in matching theory, and the structure of assemly proferences.
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generated by the optimization of some underlying decision criterion under uncertainty. Rather than focusing on a specific theory …
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Uncertainties as to future supply costs of nonrenewable natural resources, such as oil and gas, raise the issue of the choice of supply sources. In a perfectly deterministic world, an efficient use of multiple sources of supply requires that any given market exhausts the supply it can draw from...
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