Empirical studies show that agents often violate Bayes' rule in updating probability expectations. This paper deals … inference which are consistent with empirical behaviour. It is also shown that simple adaptive updating rules are more robust …

The recent spate of theoretical models of behaviour under ambiguity can be partitioned into two sets: those involving …

We test the implications of ambiguity aversion in a principal-agent problem with multiple agents. When output … distributions are uncertain, models of ambiguity aversion suggest that tournaments may become more attractive than independent wage …, under ambiguity), ambiguity averse agents should typically prefer tournaments, while ambiguity neutral agents prefer …

experimental investigation of multiple prior models of behaviour under ambiguity. Four models are considered: Expected Utility …