Terlizzese, Daniele - Istituto Einaudi per l'Economia e la Finanza (EIEF) - 2008
To achieve robustness, a decision criterion that recently has been widely adopted is Wald's minimax, after Gilboa and Schmeidler (1989) showed that (one generalisation of) it can be given an axiomatic foundation with a behavioural interpretation. Yet minimax has known drawbacks. A better...