Economic modeling assumes, for the most part, that agents are Bayesian, that is, that they entertain probabilistic beliefs, objective or subjective, regarding any event in question. We argue that the formation of such beliefs calls for a deeper examination and for explicit modeling. Models of...

We model inter-temporal ambiguity as the scenario in which a Bayesian learner holds more than one prior distribution over a set of parameters and provide necessary and sufficient condition for ambiguity to fade away because of learning. Our condition applies to most learning environments: iid...

Some frameworks of model uncertainty combine a large number of densities. Computing the quantiles of the combined distribution might be practically infeasible when the number of densities is large. We introduce a numerical procedure that can reduce the computational burden. This consists of...

Suppose that a group of agents having divergent expectations can share risks efficiently. We examine how this group should behave collectively to manage these risks. We show that the beliefs of the representative agent is in general a function of the group.s wealth level, or equivalently, that...

Based on the aggregated insights of the existing theories related to multiple sources of efficacy and locus of control, we introduce the theory of mixed control, a model of compound-risk perception. This theory considers outcome expectancies as being composed of expectancies regarding three...

We consider long-run behavior of agents assessing risk in terms of dynamic convex risk measures or, equivalently, utility in terms of dynamic variational preferences in an uncertain setting. By virtue of a robust representation, we show that all uncertainty is revealed in the limit and agents...