Finetti Theorem for this framework. A model of updating is also provided. …

decisions on risk assessment and risk management under conditions of ambiguity, i.e. where probabilities cannot be assigned to … underpins conventional cost-benet analysis (CBA). The other requires that an ambiguity-averse decision-rule - of which maxmin …

Decisions under ambiguity depend on the beliefs regarding possible scenarios and the attitude towards ambiguity. This … studies. We use laboratory experiments to estimate the subjective belief formation and belief updating process in an ambiguous … be rejected. The recovered belief updating rules reveal that the Bayesian updating hypothesis can be rejected for 84% of …

updating rules are quite heterogeneous. For most subjects, we can reject the objective equality hypothesis that beliefs are … pessimism/optimism in beliefs. The Bayesian updating hypothesis can be rejected; Most subjects under-adjust beliefs in response …

frameworks endowed with a common prior. When communication is private and nobody is excluded from it, we show that ambiguity …-free communication is a necessary and sufficient condition for a consensus to emerge. However, when communication is public, ambiguity …