Ben-Haim, Yakov; Akram, Q. Farooq; Eitrheim, Øyvind - Norges Bank - 2007
maximizes robustness and satisfices the performance. The former strategy is min-maxing and the latter strategy is robust-satisficing …. We show an “observational equivalence” between robust-satisficing and min-maxing. However, there remains a “behavioral … difference” between robust-satisficing and min-maxing. Policy makers often wish to respect specified bounds on target variables …