Dillenberger, David; Segal, Uzi - Department of Economics, University of Pennsylvania - 2012
Machina (2009, 2012) lists a number of situations where standard models of ambiguity aversion are unable to capture … plausible features of ambiguity attitudes. Most of these problems arise in choice over prospects involving three or more … outcomes. We show that the recursive non-expected utility model of Segal (1987) is rich enough to accommodate all these …