-known success-probability criterion adapted to settings characterized by model uncertainty. We apply this decision criterion to … takes explicit account of model uncertainty. To this end, the value function we propose is an analogue of the well … probability distributions constructed by Drouet et al. (2015) linking carbon budgets to future consumption. The main result that …

. Especially the condition of arbitrage for sub-hedging strategy fills the gap of the theory of arbitrage under model uncertainty …

This paper extends Harsanyi's Impartial Observer Theorem by introducing Knightian Uncertainty in the form of individual … belief systems. It features an axiomatic framework of societal decision-making in the presence of individual uncertainty. The …

attention to the information gap. To the extent that the uncertainty (or other circumstances) makes the information gap … for source preference regarding uncertainty, the comparative ignorance effect under conditions of ambiguity, aversion to …

The scientific category of uncertainty refers to that group of terms, an interpretation of which is not unambiguous and … uncertainty. This research is an attempt to solve the issue of estimating the interval uncertainty based on methods of a logical … following a given function. In the course of the research, there has been introduced a concept of the tenversion uncertainty for …

rise to uncertainty in the determination of the default probability. We show how this uncertainty can affect the estimation … introduce a model to compute the individual and systemic probability of default in a system of banks connected in a generic …

We argue that the uncertainty over the impact of macroprudential policy need not make a policymaker more cautious. Our … starting point is the classic result of Brainard (1967) which finds that uncertainty over the impact of a policy instrument … risk, potential asymmetries in policy objectives, the ability to learn from policy actions, and private sector uncertainty …

Previous studies focused on the comparison of the optimal output levels of regret- averse firms under uncertainty and … firms under certainty. This paper extends the theory by further investigating the effects of regret-aversion on production …. We compare the optimal output levels of regret-averse firms with purely risk- averse firms under uncertainty and firms …