Our path of economic development has generated a growing list of environmental problems including the disposal of nuclear waste, exhaustion of natural resources, loss of biodiversity, climate change, and polluted land, air, and water. All these environmental problems raise the crucial challenge...

Our path of economic development has generated a growing list of environmental problems including the disposal of nuclear waste, exhaustion of natural resources, loss of biodiversity, climate change, and polluted land, air, and water. All these environmental problems raise the crucial challenge...

This paper investigates the comparative statics of "more ambiguity aversion" as defined by <xref ref-type="bibr" rid="bib26">Klibanoff, Marinacci and Mukerji (2005</xref>, "A Smooth Model of Decision Making under Ambiguity", Econometrica, 73 (6), 1849--1892). The analysis uses the static two-asset portfolio problem with one safe asset...

We define coherent-ambiguity aversion within the Klibanoff, Marinacci and Mukerji (2005) smooth ambiguity model (henceforth KMM) as the combination of choice-ambiguity aversion and value-ambiguity aversion. We analyze theoretically five ambiguous decision tasks, where a subject faces two-stage...