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Bose, Subir; Ozdenoren, Emre; Pape, Andreas - In: Theoretical Economics 1 (2006) 4, pp. 411-438

unique distribution. In this paper we study the optimal auction problem allowing for ambiguity about the distribution of … valuations. Agents may be ambiguity averse (modeled using the maxmin expected utility model of Gilboa and Schmeidler 1989.) When … the bidders face more ambiguity than the seller we show that (i) given any auction, the seller can always (weakly …

Persistent link: https://www.econbiz.de/10011599377

Updating preferences with multiple priors

Klibanoff, Peter; Hanany, Eran - In: Theoretical Economics 2 (2007) 3, pp. 261-298

We propose and axiomatically characterize dynamically consistent update rules for decision making under ambiguity … of preferences over acts, to be able to reconcile typical behavior in the face of ambiguity (as exemplified by Ellsberg …

Persistent link: https://www.econbiz.de/10011599390

Coarse contingencies and ambiguity

Epstein, Larry G.; Marinacci, Massimo; Seo, Kyoungwon - In: Theoretical Economics 2 (2007) 4, pp. 355-394

The paper considers an agent who must choose an action today under uncertainty about the consequence of any chosen action but without having in mind a complete list of all the contingencies that could influence outcomes. She conceives of some relevant (subjective) contingencies but she is aware...

Persistent link: https://www.econbiz.de/10011599392

Symmetry of evidence without evidence of symmetry

Epstein, Larry G.; Seo, Kyoungwon - In: Theoretical Economics 5 (2010) 3, pp. 313-368

The de Finetti Theorem is a cornerstone of the Bayesian approach. Bernardo (1996) writes that its "message is very clear: if a sequence of observations is judged to be exchangeable, then any subset of them must be regarded as a random sample from some model, and there exists a prior distribution...

Persistent link: https://www.econbiz.de/10011599431

Dynamic choice under ambiguity

Siniscalchi, Marciano - In: Theoretical Economics 6 (2011) 3, pp. 379-421

This paper analyzes dynamic choice for ambiguity-sensitive decision makers. It demonstrates that unambiguous behavioral … sophisticated MEU preferences are then used to analyze the value of information under ambiguity; a basic trade-off between …

Persistent link: https://www.econbiz.de/10011599450

Intertemporal substitution and recursive smooth ambiguity preferences

Miao, Jianjun; Hayashi, Takashi - In: Theoretical Economics 6 (2011) 3, pp. 423-472

In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a … separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches … Seo (2009). We characterize risk attitude and ambiguity attitude within these two approaches. We then discuss our model …

Persistent link: https://www.econbiz.de/10011599451

Objective rationality and uncertainty averse preferences

Cerreia-Vioglio, Simone - In: Theoretical Economics 11 (2016) 2, pp. 523-545

As in Gilboa, Maccheroni, Marinacci, and Schmeidler \cite{GMMS}, we consider a decision maker characterized by two binary relations: $\succsim^{\ast}$ and $\succsim^{{\small \wedge}}$. The first binary relation is a Bewley preference. It\ models the rankings for which the decision maker is sure....

Persistent link: https://www.econbiz.de/10011599576

Savage games

Grant, Simon; Meneghel, Idione; Tourky, Rabee - In: Theoretical Economics 11 (2016) 2, pp. 641-682

We define and discuss Savage games, which are ordinal games of incomplete information set in L. J. Savage's framework of purely subjective uncertainty. Every Bayesian game is ordinally equivalent to a Savage game. However, Savage games are free of priors, probabilities and payoffs. Players'...

Persistent link: https://www.econbiz.de/10011599580

Condorcet meets Ellsberg

Ellis, Andrew - In: Theoretical Economics 11 (2016) 3, pp. 865-895

studies strategic voting when voters have pure common values but may be ambiguity averse -- exhibit Ellsberg-type behavior …

Persistent link: https://www.econbiz.de/10011599587

Robust contracting under common value uncertainty

Auster, Sarah - In: Theoretical Economics 13 (2018) 1, pp. 175-204

A buyer makes an offer to a privately informed seller for a good of uncertain quality. Quality determines both the seller's valuation and the buyer's valuation, and the buyer evaluates each contract according to its worst-case performance over a set of probability distributions. This paper...

Persistent link: https://www.econbiz.de/10012010024