robustness that leads to higher "induced uncertainty" facing consumers. Second, we explore how the induced uncertainty composed … market price of uncertainty. We find that induced uncertainty can better explain the observed market price of uncertainty …

consumers and show that RI by itself creats an additional demand for robustness that leads to higher ¡°induced uncertainty …¡± facing consumers. Second, we explore how the induced uncertainty composed by (i) model uncertainty due to RB and (ii) state … between RB and risk-sensitivity (RS) in this filtering problem. Finally, we evaluate the importance of induced uncertainty and …