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Hanany, Eran; Klibanoff, Peter - 2008

ambiguity aversion. This characterization extends to regret-based models as well. As an application of our general result, we … characterize dynamically consistent updating for two important models of ambiguity averse preferences: the ambiguity averse smooth … ambiguity preferences (Klibanoþ, Marinacci and Mukerji [Econometrica 73 2005, pp. 1849-1892]) and the variational preferences …

Persistent link: https://www.econbiz.de/10010266275

Case-Based Belief Formation under Ambiguity

Eichberger, Jürgen; Guerdjikova, Ani - 2010

In this paper, we consider a decision-maker who tries to learn the distribution of outcomes from previously observed cases. For each observed database of cases the decision-maker predicts a set of priors expressing his beliefs about the underlying probability distribution. We impose a version of...

Persistent link: https://www.econbiz.de/10010270218

Updating Ambiguity Averse Preferences

Hanany, Eran; Klibanoff, Peter - Center for Mathematical Studies in Economics and … - 2008

ambiguity aversion. This characterization extends to regret-based models as well. As an appli- cation of our general result, we … characterize dynamically consistent updating for two important models of ambiguity averse preferences: the ambiguity averse smooth … Hansen and Sargent [American Economic Review 91(2) 2001, pp. 60-66] as special cases. For smooth ambiguity preferences, we …

Persistent link: https://www.econbiz.de/10005588544

Strategic information selection

Preker, Jurek; Karos, Dominik - 2024

Before choosing her action to match the state of the world, an agent observes a stream of messages generated by some unknown binary signal. The agent can either learn the underlying signal for free and update her belief accordingly or ignore the observed message and keep her prior belief. After...

Persistent link: https://www.econbiz.de/10014517426

Random ambiguity

Lu, Jay - In: Theoretical Economics 16 (2021) 2, pp. 539-570

We introduce a model of random ambiguity aversion. Choice is stochastic due to unobserved shocks to both information … and ambiguity aversion. This is modeled as a random set of beliefs in the maxmin expected utility model of Gilboa and … Schmeidler (1989). We characterize the model and show that the distribution of ambiguity aversion can be uniquely identified …

Persistent link: https://www.econbiz.de/10013189043

Experimental evidence on the relationship between perceived ambiguity and likelihood insensitivity

Henkel, Luca - 2022

Observed individual behavior in the presence of ambiguity is characterized by insufficient responsiveness to changes in … subjective likelihoods. Such likelihood insensitivity under ambiguity is integral to theoretical models and predictive of … and determining factors. This paper investigates the role of beliefs in the form of ambiguity perception - the extent to …

Persistent link: https://www.econbiz.de/10013330060

Belief formation and belief updating under ambiguity: Evidence from experiments

Li, Wenhui; Wilde, Christian - 2020

This paper investigates beliefs in an ambiguous environment. In contrast to many previous studies, the beliefs regarding possible scenarios are measured independently from attitudes. We use laboratory experiments to estimate the entire distribution of subjective beliefs and examine how beliefs...

Persistent link: https://www.econbiz.de/10012432761

Separating the effects of beliefs and attitudes on pricing under ambiguity

Li, Wenhui; Wilde, Christian - 2021

regarding the realization likelihood of cash flows, the subjective attitude towards risk, and the attitude towards ambiguity …. While previous literature looks at the total price discount under ambiguity, this paper investigates with laboratory … belief effects, the risk premiums, and the ambiguity premiums from each other. Both methods lead to similar results: Overall …

Persistent link: https://www.econbiz.de/10012489886

Foundations of ambiguity models under symmetry: α-MEU and smooth ambiguity

Klibanoff, Peter; Mukerji, Sujoy; Seo, Kyoungwon; … - 2021

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

Persistent link: https://www.econbiz.de/10012670885

Timing decisions under model uncertainty

Auster, Sarah; Kellner, Christian - 2023

We study the effect of ambiguity on timing decisions. An agent faces a stopping problem with an uncertain stopping …

Persistent link: https://www.econbiz.de/10014374788