they know more about, even when their beliefs are held constant. (They are averse to "ambiguity", or uncertainty about … probability.) We review evidence, recent theoretical explanations, and applications of research on ambiguity and SEU. …

Many theories have been developed to model decision behavior under ambiguity. In this paper we empirically investigate …

(KMM) interpret ambiguity aversion as aversion against second-order risks associated with ambiguous acts. We design an … experiments. It appears that the ambiguity premium is partially paid to avoid the ambiguity issue per se, which is distinct from … notions of second- order risk. This finding is robust even when there is only partial ambiguity, and is applicable to all …

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 Savage and the Anscombe–Aumann frameworks are the two most popular approaches used when modeling ambiguity. The …

Raiffa (1961) criticizes ambiguity-averse preferences by claiming that hedging is possible with randomization of …

important contexts. Under ambiguity aversion, an ex-ante mixture could provide only ex-ante hedging but not ex-post hedging … particular, two representations are characterized for each context. One representation for ambiguity aversion is an extension of …

The Savage and the Anscombe-Aumann frameworks are the two most popular approaches used when modeling ambiguity. The …