Showing 1 - 6 of 6
This paper shows that, for CEU preferences, the axioms consquentialism, state independenceand conditional certainty equivalent consistency under updating characterise a family of capacities,called Genralised Neo-Additive Capacities (GNAC). This family contains as special casesamong others...
Persistent link: https://www.econbiz.de/10005868377
The concept of a non-extreme-outcome-additive capacity (neo-additive capacity ) is introduced.Neo-additive capacitiesmodel optimistic and pessimistic attitudes towards uncertaintyas observed in many experimental studies. Moreover, neo-additive capacities canbe applied easily in economic...
Persistent link: https://www.econbiz.de/10005868474
Least-Unmatched Price Auctions have become a popular format of TV and radio shows. Increasingly,they are also applied in internet trading. In these auctions the lowest single (unique)bid wins. We analyze the game-theoretic solution of least unmatched price auctions when prize,bidding cost and...
Persistent link: https://www.econbiz.de/10005868395
In this paper, we consider a decision-maker who tries to learn the distribution ofoutcomes from previously observed cases. For each observed sequence of casesthe decision-maker predicts a set of priors expressing his beliefs about the underlyingprobability distribution. We impose a version of...
Persistent link: https://www.econbiz.de/10005868396
We study the impact of ambiguity on two alternative institutions of nancial intermediationin an economy where consumers face uncertain liquidity needs. The ambiguitythe consumers experience is modeled by the degree of condence in their additive beliefs. Weanalyze the optimal liquidity allocation...
Persistent link: https://www.econbiz.de/10005868454
This paper analyzes the impact of capital adequacy regulation on bank insolvency and aggregate investment.
Persistent link: https://www.econbiz.de/10005850464