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 …

The paper suggests a behavioural definition of (subjective) ambiguity in an abstract setting where objects of choice … decision-theoretic foundation for the Knightian distinction between risk and ambiguity and that it provides a unifed framework … for analysing attitudes towards risk and towards ambiguity. …

We review recent advances in the field of decision making under uncertainty or ambiguity. …

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 …

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 …

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 …

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

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 …