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uncertainty. Our findings imply that a unifying theory of social risk effects requires new explanations. …
Persistent link: https://www.econbiz.de/10012598407
Contest B. This situation is called contest uncertainty. In both contests, effort is additively distorted by a contest noise … added to (subtracted from) effort. We analyze the interaction of contest uncertainty and contest noise on contestant … contest uncertainty can imply greater effort. Furthermore, an introduction of an infinitesimal degree of contest uncertainty …
Persistent link: https://www.econbiz.de/10010931432
This paper introduces E-capacities as a representation of beliefs which incorporates objective information about the probability of events. It can be shown that the Choquet integral of an E-capacity is the Ellsberg representation. The paper further explores properties of this representation of...
Persistent link: https://www.econbiz.de/10005357547
We present a definition of increasing uncertainty, in which an elementary increase in the uncertainty of any act … rise to a dual definition of comparative aversion to uncertainty. We characterize this definition for a popular class of … generalized models of choice under uncertainty. …
Persistent link: https://www.econbiz.de/10008599185
This paper studies a sequential learning problem where individuals are ambiguous about other people's signal structures. It finds that ambiguity has an important impact on social learning and provides new insights on the mechanism behind herding behavior. This paper claims that whether an...
Persistent link: https://www.econbiz.de/10012846991
Na and Shin (1998) showed that the veil of uncertainty can be conducive to the success of self-enforcing international … research efforts worldwide to reduce uncertainty about the environmental impact of emissions and the cost of reducing them … but also partial learning. Second, we test whether the conclusion also holds if there is uncertainty about abatement costs …
Persistent link: https://www.econbiz.de/10014193177
I examine a Knightian (1921) model of risk using a general equilibrium model of investment and trade. A population of agents with various preference types can choose between a safe production technology and a risky production technology. In addition, the distribution of types of agents changes...
Persistent link: https://www.econbiz.de/10014200400
all players are averse to uncertainty (i.e., all the functionals are quasi--concave). We further show that if the …
Persistent link: https://www.econbiz.de/10014217141
coordination game with and without strategic uncertainty. The latter is distinguished from risk and is modeled by means of the … choquet expected utility theory. For the case of no Uncertainty, multiple Pareto-Ranked equilibria arises. The study of the … game under uncertainty shows that the Pareto-Dominated equilibrium can be selected in equilibrium for sufficiently …
Persistent link: https://www.econbiz.de/10014141091
We consider an incomplete information network game in which agents’ information is restricted only to the identity of their immediate neighbors. Agents form beliefs about the adjacency pattern of others and play a linear-quadratic effort game to maximize interim payoffs. We establish the...
Persistent link: https://www.econbiz.de/10014344709