. These rules apply to the preferences with multiple priors of Gilboa and Schmeidler (1989), and are the first, for any model … of preferences over acts, to be able to reconcile typical behavior in the face of ambiguity (as exemplified by Ellsberg … set of priors, where the specific subset depends on the preferences, the conditioning event, and the choice problem (i …

rate of the GNP per head affects this rate. Under various conditions on preferences, as positive prudence, decreasing …

specific restrictions on the distribution of uncertain growth and on preferences. We consider a logarithmic random walk for … aversion is decreasing. Relaxing the assumption on the absence of recession requires more restrictions on preferences, as …

Time preferences drive decisions in many economic situations, such as investment contexts or salary negotiations. These … situations are characterized by a very short time frame for decision making. Preferences are potentially susceptible to the … time pressure since the underlying assumption of these models is that preferences are stable. To address the stability of …

We estimate whether risk preferences are affected by traumatic events by using a unique survey of Sri Lankan twins … civil war, validated measures of mental health and risk preferences, and a rich set of control variables. Our estimation …