Uncertainty has an almost negligible impact on project value in the economic standard model. I show that a … comprehensive evaluation of uncertainty and uncertainty attitude changes this picture fundamentally. The analysis relies on the … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …

We show that ambiguity aversion increases the value of a statistical life as soon as the marginal utility of wealth is … higher if alive than dead. The intuition is that ambiguity aversion has a similar effect as an increase in the perceived … baseline mortality risk, and thus operates as the “dead anyway” effect. We suggest, however, that ambiguity aversion should …

of the probability of a horse winning—longshots are overbet, while favorites are underbet. Neoclassical explanations of … misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory. …

This paper studies how updating affects ambiguity-attitude. In particular we focus on the generalized Bayesian update … of the Jaffray-Phillipe sub-class of Choquet Expected Utility preferences. We find conditions for ambiguity-attitude to … be the same before and after updating. A necessary and sufficient condition for ambiguity-attitude to be unchanged when …

We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to … mass index, are less likely to save money and show worse conduct at school. Experimental measures for risk and ambiguity …

vs. low macroeconomic uncertainty. We find unexpected monetary policy moves to exert a substantially milder impact in … presence of high uncertainty. We then exploit the set of impulse responses coming from the nonlinear VAR framework to estimate … milder macroeconomic responses to a monetary policy shock estimated with our VAR in presence of high uncertainty. A version …

We compare performance in a word based creativity task under three incentive schemes: a flat fee, a linear payment and …

It has been argued that monetary incentives restrain individual creativity and hamper performance in jobs requiring out …