Dana, Rose-Anne; Riedel, Franck - HAL - 2013
model with neither risk nor uncertainty at the aggregate level is considered. Risk is always fully insured. For small levels … of ambiguity, there exists an equilibrium with inertia where agents also insure fully against Knightian uncertainty. When … inertia where agents do not insure against uncertainty at all. We also show that equilibria with inertia are indeterminate. …