Ghirardato, Paolo; Maccheroni, Fabio; Marinacci, Massimo - International Centre for Economic Research (ICER) - 2002
The objective of this paper is to show how ambiguity, and a decision maker (DM)'s response to it, can be modelled formally in the context of a very general decision model. In the first part of the paper we introduce an "unambiguous preference" relation derived from the DM's preferences, and show...