Marinacci, Massimo; Ruffino, Doriana; Maccheroni, Fabio - Society for Economic Dynamics - SED - 2011
We study orders of risk and model uncertainty aversion in the smooth ambiguity model proposed by Klibanoff, Marinacci, and Mukerji (2005). We consider a quadratic approximation of their model and we show that both risk and model uncertainty attitudes have at most a second order effect....
