In Senegal we encountered a situation in which a minority group of migrant fishermen had completely different sets of expectations regarding a collective action depending on the location where they operated. In one village expectations were pessimistic, while in the other village they were...

In Senegal we encountered a situation in which a minority group of migrant fishermen had completely different sets of expectations regarding a collective action depending on the location where they operated. In one village expectations were pessimistic, while in the other village they were...

In Senegal, we encountered a situation in which a minority group of migrant fishermen had completely different sets of expectations regarding a collective action depending on the location where they operated. In one village expectations were pessimistic, while in the other village they were...

This paper shows that in the class of variational preferences the notion of probabilistic sophistication is equivalent to expected utility as long as there exists at least one event such that the independence axiom holds for bets on that event. This extends the result of Marinacci (2002) and...

Dynamic models of ambiguity aversion are increasingly popular in applied work. This paper shows that there is a strong interdependence in such models between the ambiguity attitude and the preference for the timing of the resolution of uncertainty, as defined by the classic work of Kreps and...

This article provides an axiomatic characterization of quasi-hyperbolic discounting and a more general class of semi-hyperbolic preferences. We impose consistency restrictions directly on the intertemporal trade-offs by relying on what we call “annuity compensations.†Our...

Though risk aversion and the elasticity of intertemporal substitution have been the subjects of careful scrutiny, the long-run risks literature as well as the broader literature using recursive utility to address asset pricing puzzles have ignored the full implications of their parameter...