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 …

The Allais critique of expected utility theory (EUT) has led to the development of theories of choice under risk that …

of ambiguity sensitivity that are importantly different. The two classes are exemplified by the -MEU model and the smooth … ambiguity model, respectively; and the issue is whether or not a desire to hedge independently resolving ambiguities contributes … to an ambiguity averse preference for a randomized act. Building on this insight, we implement an experiment whose design …

under which ambiguity aversion raises the demand for (self-)insurance and self-protection. In particular, it is shown that … in most usual situations where the level of ambiguity does not increase with the level of effort, a simple condition of … ambiguity prudence known as decreasing absolute ambiguity aversion (DAAA) is sufficient to give a clear and positive answer to …

's wealth could increase as compared to the holdings under the Merton rule, which is the standard risk aversion case. With two … or less ambiguity, and reduce the holding of the asset for which there is more ambiguity, a result that might provide an …

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

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 …