currency bias. The investor's dislike for model uncertainty induces a disproportionately high currency hedging demand. The …

probability. Our starting point is an abstract class of preferences constructed to be (strictly) partially ordered by a more …

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 …

The paper considers an agent who must choose an action today under uncertainty about the consequence of any chosen …

levels and carbon prices, all of which are subject to significant uncertainty. To deal with these uncertainties, we apply the …

We examine the economic behavior of the regret-averse firm under price uncertainty. We show that the global and … marginal effects of price uncertainty on production are both positive (negative) when regret aversion prevails if the random …

This paper presents an analysis of the problem of aggregating preference orderings under subjective uncertainty …

We investigate the effect of uncertainty on investment. We employ a unique dataset of 25000 Greek firms' balance sheets … uncertainty. The investment performance of 14 sectors is examined within a dynamic investment model. Robust GMM estimates of the … investment rate model reveal a high degree of heterogeneity among these sectors. Overall uncertainty affects negatively …

oligopoly characterized by a homogeneous non-storable good, sticky prices and uncertainty. Our model nests the classical dynamic …-time limit of our model with no uncertainty and no risk-aversion. Focusing on the continuous-time limit of the infinite horizon … inversely related to the degrees of uncertainty and risk-aversion. However, the effect of uncertainty and risk …

's (1921) distinction between uncertainty and risk. Along with the risky profit-maximizing scenario, identifying a second, off …