ambiguity averse relation. First, we define two notions of more ambiguous with respect to such a class. A more ambiguous (I) act … makes an ambiguity averse decision maker (DM) worse off but does not affect the welfare of an ambiguity neutral DM. A more … ambiguous (II) act adversely affects a more ambiguity averse DM more, as measured by the compensation they require to switch …

between the set of relevant measures, shown by KMS [21] to reflect only perceived ambiguity, and the set of measures (which we … perceived ambiguity. Regarding symmetry assumptions, we show that, under relatively mild conditions, a variety of preference … stringent. Only when it is satisfied may the Bewley set be interpreted as reflecting only perceived ambiguity and not also taste …

The results of an experiment extending Ellsberg's setup demonstrate that attitudes towards ambiguity and compound … probabilities, and (3) are ambiguity non-neutral. By decomposing ambiguity into risk and model uncertainty, and jointly eliciting … ambiguity aversion. Our data provides evidence of decreasing absolute ambiguity aversion and constant relative ambiguity …

in characterizing ambiguity attitudes. In addition to providing new insights into the underlying processes behind … ambiguity aversion - failure to reduce compound probabilities or distinct attitudes towards unknown probabilities - our study …

This paper assessed the quantitative impact of ambiguity on historically observed financial asset returns and growth … dividends next period as ambiguous. We calibrate the agent's ambiguity aversion to match only the first moment of the risk … growth outcomes. Ambiguity aversion accentuates the conditional uncertainty endogenously in a dynamic way, depending on the …

The α-MEU model and the smooth ambiguity model are two popular models in decision making under ambiguity. However, the …