uncertainty on the ?market for lemons? of Akerlof (1970) to ?quality ambiguity? with credence goods. The model shows the market …

control theory to the so-called multiplier and constraint preferences that have been used to express ambiguity aversion …

We propose a class of multiple-prior representations of preferences under ambiguity where the belief the decision … Optimism. The model does not restrict the sign of the DM's ambiguity attitude, and we show that it provides a unified framework … through which to characterize different degrees of ambiguity aversion, as well as to represent context-dependent negative and …

This paper analyzes dynamic choice for ambiguity-sensitive decision makers. It demonstrates that unambiguous behavioral … sophisticated MEU preferences are then used to analyze the value of information under ambiguity; a basic trade-off between …

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

differences lies in the dichotomy between first-order and second-order ambiguity aversion which I define here. My definition and …-order ambiguity aversion a positive exposure to ambiguity is optimal if and only if there is a subjective belief such that the actś … expected outcome is positive. With first-order ambiguity aversion, zero exposure to ambiguity can be optimal. Examples in …

investigate how informational ambiguity in conjunction with waves of optimism and pessimism affect investor behavior, social … learning and price dynamics. Without ambiguity, neither herding nor contrarianism is possible. If there is ambiguity and agents … have invariant ambiguity preferences, only contrarianism is possible. If on the other hand ambiguity is high and traders …