Machina, Mark J.; Siniscalchi, Marciano - In: Handbook of the economics of risk and uncertainty : volume 1, (pp. 729-807). 2014
The phenomena of ambiguity and ambiguity aversion , introduced in Daniel Ellsberg’s seminal 1961 article, are ubiquitous in the real world and violate both the key rationality axioms and classic models of choice under uncertainty. In particular, they violate the hypothesis that individuals’...
