Showing 1 - 10 of 16
and that the model is consistent with a rich set of possibilities for dynamic behavior under ambiguity. …
Persistent link: https://www.econbiz.de/10005808194
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
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
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
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
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 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
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
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
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