Are foundations of models of ambiguity-sensitive preferences too flawed to be usefully applied to economic models?  Al …-Najjar and Weinstein do not apply to quite a few of the ambiguity preference models of more recent vintage, and therefore to that … extent do not undermine the foundational aspects or applicability of ambiguity models in general.  Second, we argue the focus …

We provide a model of decision making under uncertainty in which the decision maker reacts to imprecision of the … notions of comparative aversion to imprecision of the data as well as traditional notions of risk aversion. Interestingly, the … study of comparative aversion to imprecision can be done independently of the utility function, which embeds risk attitudes …

We consider fundamental questions of arbitrage pricing arising when the uncertainty model is given by a set of possible … the existence of such sets when volatility uncertainty is modeled by a stochastic differential equation, driven by Peng …

The aim of this contribution is to revisit, clarify and complete the picture of uncertainty estimates in the chain … prediction uncertainty (using Mack's formula) and the one of the one-year prediction uncertainty (using the Merz-Wüthrich formula … total run-off uncertainty view …

We introduce a category that represents varying risk as well as uncertainty, and give a generalized conditional …

measures, and spatial and time fixed measures of expected future prices and price uncertainty. This method improves the … price uncertainty by a generalized autoregressive conditional heteroskedasticity (GARCH) model. To explore for the presence … of real options in house prices, vacant land sales price is regressed on SDM measures of future house price uncertainty …

Maximising expected value is the classic doctrine in choice theory under empirical uncertainty, and a prominent … proposal in the emerging literature on normative uncertainty, i.e., uncertainty about the standard of evaluation. But how … difference lies in the perspective from which expectations are taken, or equivalently the amount of uncertainty packed into the …