Similar Search Results

Epstein, Larry G.; Schneider, Martin - University of Rochester - Center for Economic Research … - 2001

and that the model is consistent with a rich set of possibilities for dynamic behavior under ambiguity. …

Persistent link: https://www.econbiz.de/10005808194

Two Derivations of the Uniform Rule and an Application to Bankruptcy

Schummer, J.; Thomson, W. - University of Rochester - Center for Economic Research … - 1996

We consider the problem of allocating a single infinitely divisible commodity to agents with single-peaked preferences, and establish two properties of the rule that has played the central role in the analysis of this problem, the uniform role. Among the efficient allocations, it selects (1) the...

Persistent link: https://www.econbiz.de/10005503955

Bargaining and the theory of cooperative games: John Nash and beyond

Thomson, William - University of Rochester - Center for Economic Research … - 2009

This essay surveys the literature on the axiomatic model of bargaining formulated by Nash ("The Bargaining Problem," Econometrica 28, 1950, 155-162).

Persistent link: https://www.econbiz.de/10005103159

Convergence under Replication of Rules to Adjudicate Conflicting Claims

Chun, Youngsub; Thomson, William - University of Rochester - Center for Economic Research … - 2004

We study the behavior of rules for the adjudication of con°icting claims when there are a large number of claimants with small claims. We model such situations by replicating some basic problem. We show that under replication, the random arrival rule (O'Neill, 1982) behaves like the...

Persistent link: https://www.econbiz.de/10005808145

Children crying at birthday parties. Why? Fairness and incentives for cake division problems

Thomson, William - University of Rochester - Center for Economic Research … - 2006

We consider the problem of dividing a non-homogeneous one- dimensional continuum whose endpoints are topologically identi¯ed. Examples are the division of a birthday cake, the partition of a circular market, the assignment of sentry duty or medical call. We study the existence of rules...

Persistent link: https://www.econbiz.de/10005200816

Subjective Probabilities on Subjectivity Unambiguous Event.

Epstein, L.G.; Zhang, J. - University of Rochester - Center for Economic Research … - 1998

Evidence such as the Ellsberg Paradox shows that decision-makers do not assign probabilities to all events. It is intuitive that they may differ not only in the probabilities assigned to given events but also in the identity of the events to which they assign probabilities. This paper describes...

Persistent link: https://www.econbiz.de/10005808207

Living with risk

Epstein, Larry G. - University of Rochester - Center for Economic Research … - 2007

Living with risk can lead to anticipatory feelings such as anxiety or hopefulness. Such feelings can a¤ect the choice between lotteries that will be played out in the future - choice may be motivated not only by the (static) risks involved but also by the desire to reduce anxiety or to promote...

Persistent link: https://www.econbiz.de/10005698192

An axiomatic model of 'cold feet'

Epstein, Larry G.; Kopylov, Igor - University of Rochester - Center for Economic Research … - 2007

Individuals often lose confidence in their prospects as they approach the "moment of truth." An axiomatic model of such individuals is provided. The model adapts and extends (by relaxing the Independence axiom) Gul and Pesendorfer's model of temptation and self-control to capture an individual...

Persistent link: https://www.econbiz.de/10008833206

Ambiguity, risk and asset returns in continuous time

Chen, Zengjing; Epstein, Larry G. - University of Rochester - Center for Economic Research … - 2000

illustrated by the Ellsberg Paradox, this feature rules out a priori any concern with ambiguity. This paper formulates a … continuous-time intertemporal version of multiple-priors utility, where aversion to ambiguity is admissible. When applied to a … premium for risk and a seperate premium for ambiguity. …

Persistent link: https://www.econbiz.de/10005503965

Ambiguity, Information Quality and Asset Pricing

Epstein, Larry; Schneider, Martin - University of Rochester - Center for Economic Research … - 2004

When ambiguity averse investors process news of uncertain quality, they act as if they take a worst-case assessment of … returns, increase price volatility and induce ambiguity premia that depend on idiosyncratic risk in fundamentals. Moreover …

Persistent link: https://www.econbiz.de/10005504015