expected utility paradigm. This paper develops a theory of decision making with a partially specified probability. The paper …In Ellsberg paradox, decision makers that are partially informed about the actual probability distribution violate the …

We analyze a market game where firms choose capacities under uncertainty about future market conditions and make output … choices after uncertainty has unraveled. We show existence and uniqueness of equilibrium under imperfect competition and … capacity and welfare by fitting it to the data of the German electricity market. -- Investment incentives ; demand uncertainty …

players. -- Uncertainty Aversion ; Nash Equilibrium ; Ambiguity …

; Knightian Uncertainty ; Uncertainty Aversion. …

Economic theory suggests that the deterrence of deviant behavior is driven by a combination of severity and certainty … overlooked: the swiftness of formal sanctions. We consider two dimensions: the timing at which the uncertainty about whether one …