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Environmental catastrophes under time-inconsistent preferences

Michielsen, Thomas - 2013

I analyze optimal natural resource use in an intergenerational model with the risk of a catastrophe. Each generation …

Persistent link: https://www.econbiz.de/10009757402

Perceptions of efficacy, control, and risk : a theory of mixed control

Monsen, Erik; Urbig, Diemo - 2009

, we introduce the theory of mixed control, a model of compound-risk perception. This theory considers outcome expectancies …-efficacy ; risk perception … as being composed of expectancies regarding three distinct sources of risk (self, others, and chance). This reflects that …

Persistent link: https://www.econbiz.de/10003809935

Believe me when I say green! : heterogeneous expectations and climate policy uncertainty

Campiglio, Emanuele; Lamperti, Francesco; Terranova, Roberta - 2023 - This version: March 2023

announcements, can trap the economy into a vicious circle of credibility loss, carbon-intensive investments and increasing risk …

Persistent link: https://www.econbiz.de/10014232654

Climate Policy Decisions Under Uncertainty

Clarke, Harry - 2016

The economics of global climate mitigation is discussed when there is imperfect knowledge of future climatic changes, of policy effectiveness and of the policy responses by different countries. Uncertainty is accounted for by using heuristics derived from classical decision rules. These...

Persistent link: https://www.econbiz.de/10014129185

Uncertainty, Choices and Prices in a Market for Lotteries

Menzies, Gordon Douglas; Zizzo, Daniel John - 2009

We consider an experimental setting where agents receive one stylized piece of information at a time about the value of a lottery. We find that Knightian uncertainty about the prior distribution of true lottery values does not hamper decision making by agents and markets. On a mean squared error...

Persistent link: https://www.econbiz.de/10014203658

Navigating ambiguity : imprecise probabilities and the updating of disease risk beliefs

Kerwin, Jason; Pandey, Divya - 2023

Probabilistic risk beliefs are key drivers of economic and health decisions, but people are not always certain about … measurable separately from the levels of risk beliefs. People with higher levels of imprecision update their beliefs more in …

Persistent link: https://www.econbiz.de/10014390526

Initial beliefs uncertainty

Galimberti, Jaqueson K - 2021

This paper evaluates how initial beliefs uncertainty can affect data weighting and the estimation of models with adaptive learning. One key finding is that misspecification of initial beliefs uncertainty, particularly with the common approach of artificially inflating initials uncertainty to...

Persistent link: https://www.econbiz.de/10013217420

Delegation uncertainty

Li, Ye; Wang, Chen - 2018

Delegation bears an intrinsic form of uncertainty. Investors hire managers for their superior models of asset markets, but delegation outcome is uncertain precisely because managers' model is unknown to investors. We model investors' delegation decision as a trade-off between asset return...

Persistent link: https://www.econbiz.de/10011976244

An Evolutionary Perspective on Updating Risk and Ambiguity Preferences

Sarver, Todd - 2019

with ambiguity, and we establish that adaptive preferences nest variants of many models in the literature on risk and … ambiguity as special cases. Since models of either ambiguity aversion or non-expected utility for risk cannot satisfy both … violations of expected utility in the context of risk …

Persistent link: https://www.econbiz.de/10012857976

Economic uncertainty and subjective inflation expectations

Rossmann, Tobias - 2019

Measuring economic uncertainty is crucial for understanding investment decisions by individuals and firms. Macroeconomists increasingly rely on survey data on subjective expectations. An innovative approach to measure aggregate uncertainty exploits the rounding patterns in individuals' responses...

Persistent link: https://www.econbiz.de/10012034114