populated by both standard expected utility maximizers and by ambiguity-averse investors that trade in the market for a risky … asset. We show that, provided there is a sufficient amount of ambiguity, market breakdowns where large portions of traders … to ambiguity. When we analyze the effect of policy actions, we find that when a market has fallen into a state of …

We consider portfolio selection under nonparametric alpha-maxmin ambiguity in the neighbourhood of a reference … distribution. We show strict concavity of the portfolio problem under ambiguity aversion.Implied demand functions are … ambiguity. Ambiguity seekers exhibit a discontinuous demand function, implying an empty set of reservation prices. If agents …