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Environmental policy often has to be devised under informational constraints, like uncertainty and asymmetric …
Persistent link: https://www.econbiz.de/10003667308
attention to the information gap. To the extent that the uncertainty (or other circumstances) makes the information gap … for source preference regarding uncertainty, the comparative ignorance effect under conditions of ambiguity, aversion to …
Persistent link: https://www.econbiz.de/10013022819
This paper explores the relationship between dynamic consistency and the existing notions of unambiguous events for Choquet expected utility preferences. A decision maker is faced with an information structure represented by a filtration. We show that the decision maker's preferences respect...
Persistent link: https://www.econbiz.de/10003879722
We introduce a new updating rule, the conditional maximum likelihood rule (CML) for updating ambiguous information. The CML formula replaces the likelihood term in Bayes’ rule with the maximal likelihood of the given signal conditional on the state. We show that CML satisfies a new axiom,...
Persistent link: https://www.econbiz.de/10013213658
We consider an information design problem when the sender faces ambiguity regarding the probability distribution over … admits a representation as a randomization over mechanisms consisting of two messages. A small level of uncertainty regarding … the receiver's prior makes the sender more truthful than in the full information benchmark, but as uncertainty increases …
Persistent link: https://www.econbiz.de/10014260019
over a set of probability distributions. This paper demonstrates that the contract that maximizes the minimum payoff over … all possible probability distributions of quality is a screening menu that separates all types, whereas the optimal … contract for any given probability distribution is a posted price, which induces bunching. Using the e-contamination model …
Persistent link: https://www.econbiz.de/10011855861
In traditional sequential search models, players face ex ante uncertainty prior to each search but obtain certain … modified sequential search model with ex post uncertainty in which the uncertainty cannot be fully eliminated by the search. In … our theory in a laboratory experiment with a search game to track subjects' behavior and use a multiple price list and a …
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