We introduce a model of random ambiguity aversion. Choice is stochastic due to unobserved shocks to both information and ambiguity aversion. This is modeled as a random set of beliefs in the maxmin expected utility model of Gilboa and Schmeidler (1989). We characterize the model and show that...

Algorithms are increasingly used to guide decisions in high-stakes contexts, such as who should receive bail, be approved for a loan, or be hired for a job. Motivated by a growing body of empirical evidence, regulators are concerned about the possibility that the error rates of these algorithms...