relevant measures as reflecting part of perceived ambiguity, meaning subjective uncertainty about probabilities over states …. Under mild conditions, we show that increases or decreases in ambiguity aversion cannot affect the relevant measures. This … property, necessary for the conclusion that these measures reflect only perceived ambiguity, distinguishes the set of relevant …

assets - and Markowitz - who advocates diversification across assets. We rely on the concepts of ambiguity and ambiguity … degree of ambiguity across assets, and (ii) the standard deviation of the estimate of expected return on each asset. If the … standard deviation of the expected return estimate and the difference between the ambiguity about familiar and unfamiliar …

asset returns. Our contribution is to develop a framework that allows for ambiguity about the joint distribution of returns … for all stocks being considered for the portfolio, and also for different levels of ambiguity for the marginal … international equity returns. The calibration shows that when the overall ambiguity about the joint distribution of returns is high …

her subjective information. A key feature of our model is that it achieves a separation between ambiguity, identified as a … characteristic of the decision maker`s subjective information, and ambiguity attitude, a characteristic of the decision maker …, as usual, while attitudes towards ambiguity are characterized by the shape of the increasing transformation applied to …

transparency and constructive ambiguity. The first two show that transparency reduces the variability of inflation and the output … preferences for all circumstances, in line with the hypothesis of constructive ambiguity, we find that both the levels and the … may have been exploiting constructive ambiguity more than a lack of transparency. …