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Chapter 17. Ambiguity and Nonexpected Utility
Karni, Edi; Maccheroni, Fabio; Marinacci, Massimo - In: Handbook of game theory with economic applications : …, (pp. 901-947). 2015
depart from the sure thing principle and model the phenomenon of ambiguity and ambiguity aversion. …
Persistent link: https://www.econbiz.de/10014025442
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Subjective expected utility in games
Di Tillio, Alfredo - In: Theoretical economics : TE ; an open access journal in … 3 (2008) 3, pp. 287-323
This paper extends Savage's subjective approach to probability and utility from decision problems under exogenous uncertainty to choice in strategic environments. Interactive uncertainty is modeled both explicitly, using hierarchies of preference relations, the analogue of beliefs hierarchies,...
Persistent link: https://www.econbiz.de/10011700273
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Stochastic representation decision theory : how probabilities and values are entangled dual characteristics in cognitive processes
Ferro, Giuseppe M.; Sornette, Didier - 2020
Humans are notoriously bad at understanding probabilities, exhibiting a host of biases and distortions that are context dependent. This has serious consequences on how we assess risks and make decisions. Several theories have been developed to replace the normative rational expectation theory at...
Persistent link: https://www.econbiz.de/10012219210
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Do decision makers have subjective probabilities? : an experimental test
Ronayne, David; Veneziani, Roberto; Zame, William R. - 2022 - This version: June 21, 2022
Anscombe and Aumann (1963) offer a definition of subjective probability in terms of comparisons with objective probabilities. That definition - which has provided the basis for much of the succeeding work on subjective probability - presumes that the subjective probability of an event is...
Persistent link: https://www.econbiz.de/10013259255
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Manipulating reliance on intuition reduces risk and ambiguity aversion
Butler, Jeffrey; Guiso, Luigi; Jappelli, Tullio - 2013
averse to risk and ambiguity. The evidence is largely correlational, however, leaving open the question of the direction of … causality. In this paper, we present experimental evidence of causation running from reliance on intuition to risk and ambiguity … lowers the probability of being ambiguity averse by 30 percentage points and increases risk tolerance by about 30 percent in …
Persistent link: https://www.econbiz.de/10010200793
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Second order beliefs models of choice under imprecise risk : non-additive second order beliefs vs. nonlinear second order utility
Giraud, Raphaël - In: Theoretical economics : TE ; an open access journal in … 9 (2014) 3, pp. 779-816
axiomatizations. Ambiguity attitude and attitude toward information in general are discussed and characterized. …
Persistent link: https://www.econbiz.de/10011674093
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A theory of experimenters
Banerjee, Abhijit V.; Chassang, Sylvain; Montero, Sergio; … - 2017
This paper proposes a decision-theoretic framework for experiment design. We model experimenters as ambiguity …
Persistent link: https://www.econbiz.de/10011735910
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Allais, Ellsberg, and preferences for hedging
Dean, Mark; Ortoleva, Pietro - In: Theoretical economics : TE ; an open access journal in … 12 (2017) 1, pp. 377-424
Two of the most well known regularities observed in preferences under risk and uncertainty are ambiguity aversion and …, together with other standard ones, is equivalent to a representation in which the agent (i) evaluates ambiguity using multiple …
Persistent link: https://www.econbiz.de/10011704845
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A note on dynamic consistency in ambiguous persuasion
Pahlke, Marieke - 2019
Beauchêne, Li, and Li (2019) show that ambiguous persuasion leads to new interim equilibria with higher ex ante value for the Sender compared to the standard Bayesian persuasion. However, in their equilibrium the strategy of the Receiver is in general not ex ante optimal. This note, defines...
Persistent link: https://www.econbiz.de/10012009891
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Reacting to ambiguous messages: an experimental analysis
Kellner, Christian; Thordal-Le Quement, Mark; Riener, … - 2020
. For both ambiguity averse and neutral subjects within this population, one significant channel is behavioral in nature … (anchoring). For ambiguity averse subjects, another channel of similar magnitude is hedging motivated by the desire to reduce … ambiguity. This channel is absent in the case of ambiguity neutral subjects. …
Persistent link: https://www.econbiz.de/10012387552