Ortoleva, Pietro - In: Rivista di Politica Economica (2014) 3, pp. 45-64
We study a model of non-Bayesian updating for ambiguity averse agents, based on the Hypothesis Testing model of Ortoleva (2012). Agents have a set of priors that they update as follows. If all priors assign to new information a probability above a threshold, they update every prior using Bayes...