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Experts are asked to provide their advice in a situation of uncertainty. They adopt the decision makerʼs utility function, but each has a potentially different set of prior probabilities, and so does the decision maker. The decision maker and the experts maximize the minimal expected utility...
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We study the market implications of ambiguity in common models. We show that generic determinacy is a robust feature in … general equilibrium models that allow a distinction between ambiguity and risk. …
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Many real-life decisions have to be taken on the basis of probability judgements of which the decision maker is not entirely sure. This paper develops a decision rule for taking such decisions, which incorporates the decision makerʼs confidence in his probability judgements according to the...
Persistent link: https://www.econbiz.de/10011049884
from convex (through randomization) sets, and connects them by defining a behavioral notion of perceived ambiguity …. Substantively, a main idea is to behaviorally identify ambiguity with failures of independence of irrelevant alternatives. Regarding …
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