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We study the interplay of probabilistic sophistication, second order stochastic dominance and uncertainty aversion, three fundamental notions in choice under uncertainty. In particular, our main result, Theorem 2, characterizes uncertainty averse preferences that are probabilistically...
Persistent link: https://www.econbiz.de/10011065383
We provide a simple proof for the existence of an expected utility representation of a preference relation with an unbounded and continuous utility function.
Persistent link: https://www.econbiz.de/10011065434