Are foundations of models of ambiguity-sensitive preferences too flawed to be usefully applied to economic models?  Al …-Najjar and Weinstein do not apply to quite a few of the ambiguity preference models of more recent vintage, and therefore to that … extent do not undermine the foundational aspects or applicability of ambiguity models in general.  Second, we argue the focus …

ambiguity averse relation. First, we define two notions of more ambiguous with respect to such a class. A more ambiguous (I) act … makes an ambiguity averse decision maker (DM) worse off but does not affect the welfare of an ambiguity neutral DM. A more … ambiguous (II) act adversely affects a more ambiguity averse DM more, as measured by the compensation they require to switch …

This paper introduces changes in the level of ambiguity as a complementary source of time-varying risk aversion. We … ambiguity raises investors' risk aversion. The effect is quantified in an application to European sovereign debt markets using a … structural VAR to achieve identification in the data. We proxy for ambiguity using a measure of macroeconomic uncertainty and …

This paper introduces changes in the level of ambiguity as a complementary source of time-varying risk aversion. We … ambiguity raises investors' risk aversion. The effect is quantified in an application to European sovereign debt markets using a … structural VAR to achieve identification in the data. We proxy for ambiguity using a measure of macroeconomic uncertainty and …

ambiguity averse relation. First, we define two notions of more ambiguous with respect to such a class. A more ambiguous (I) act … makes an ambiguity averse decision maker (DM) worse off but does not affect the welfare of an ambiguity neutral DM. A more … ambiguous (II) act adversely affects a more ambiguity averse DM more, as measured by the compensation they require to switch …

ambiguity model of decision making under uncertainty developed by Klibanoff, Marinacci and Mukerji (2005).  We revisit these … thought exeperiments and find, to the contrary, that they either point to strengths of the smooth ambiguity model compared to … experiment, raise criticisms that apply equally to a broad range of current ambiguity models. …

We propose and axiomatize a new model of preferences that achieves a separation between ambiguity, identified as a … characteristic of the decision maker's subjective information, and ambiguity attitude, a characteristic of the decision maker …

This paper axiomatizes an intertemporal version of the Smooth Ambiguity decision model developed in Klibanoff …, Marinacci, and Mukerji (2005). A key feature of the model is that it achieves a separation between ambiguity, identified as a … characteristic of the decision maker's subjective beliefs, and ambiguity attitude, a characteristic of the decision maker's tastes …

ambiguity averse relation. First, we define two notions of more ambiguous with respect to such a class. A more ambiguous (I) act … makes an ambiguity averse decision maker (DM) worse off but does not affect the welfare of an ambiguity neutral DM. A more … ambiguous (II) act adversely affects a more ambiguity averse DM more, as measured by the compensation they require to switch …