When confronted with uncertain prospects, people often exhibit both choice deferral and Ellsberg-type ambiguity …

When confronted with uncertain prospects, people often exhibit both choice deferral and Ellsberg-type ambiguity …

When confronted with uncertain prospects, people often exhibit both choice deferral and Ellsberg-type ambiguity …

In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a … separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches … Seo (2009). We characterize risk attitude and ambiguity attitude within these two approaches. We then discuss our model …

In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a … separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches … Seo (2009). We characterize risk attitude and ambiguity attitude within these two approaches. We then discuss our model …

In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a … separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches … Seo (2009). We characterize risk attitude and ambiguity attitude within these two approaches. We then discuss our model …

depart from the sure thing principle and model the phenomenon of ambiguity and ambiguity aversion. …

This paper investigates the effects of an increase in ambiguity aversion and an increase in ambiguity in an insurance … bargaining game with a risk-and-ambiguity-neutral insurer and a risk-and-ambiguity-averse client. Both a cooperative and a non …-cooperative bargaining game are examined. We show that, in both games, full coverage is optimal in the presence of ambiguity, and that the …

from convex (through randomization) sets, and connects them by defining a behavioral notion of perceived ambiguity …. Substantively, a main idea is to behaviorally identify ambiguity with failures of independence of irrelevant alternatives. Regarding …

We consider two plausible and even natural examples of ambiguity aversion: the classical Ellsberg (1961) two …