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Hanany, Eran; Klibanoff, Peter - 2008

ambiguity aversion. This characterization extends to regret-based models as well. As an application of our general result, we … characterize dynamically consistent updating for two important models of ambiguity averse preferences: the ambiguity averse smooth … ambiguity preferences (Klibanoþ, Marinacci and Mukerji [Econometrica 73 2005, pp. 1849-1892]) and the variational preferences …

Persistent link: https://www.econbiz.de/10010266275

Neo-additive capacities and updating

Eichberger, Jürgen; Grant, Simon; Lefort, Jean-Philippe - Alfred-Weber-Institut für Sozial- und … - 2009

This paper shows that, for CEU preferences, the axioms consquentialism, state independenceand conditional certainty equivalent consistency under updating characterise a family of capacities,called Genralised Neo-Additive Capacities (GNAC). This family contains as special casesamong others...

Persistent link: https://www.econbiz.de/10005868377

Boolean representations of preferences under ambiguity

Frick, Mira; Iijima, Ryota; Le Yaouanq, Yves - 2019

We propose a class of multiple-prior representations of preferences under ambiguity where the belief the decision … Optimism. The model does not restrict the sign of the DM's ambiguity attitude, and we show that it provides a unified framework … through which to characterize different degrees of ambiguity aversion, as well as to represent context-dependent negative and …

Persistent link: https://www.econbiz.de/10012141879

Preference for randomization and ambiguity aversion

Saito, Kota - 2011

Raiffa (1961) criticizes ambiguity-averse preferences by claiming that hedging is possible with randomization of …

Persistent link: https://www.econbiz.de/10010282920

Preference for randomization: Ambiguity aversion and inequality aversion

Saito, Kota - 2010

important contexts. Under ambiguity aversion, an ex-ante mixture could provide only ex-ante hedging but not ex-post hedging … particular, two representations are characterized for each context. One representation for ambiguity aversion is an extension of …

Persistent link: https://www.econbiz.de/10010286983

Coupled lotteries: A new method to analyze inequality aversion

Koch, Melanie; Menkhoff, Lukas; Schmidt, Ulrich - 2019

We develop and implement a new measure for inequality aversion: two peers are endowed with identical binary lotteries and the only choice they make is whether they want to play out the lotteries independently or with perfect positive correlation (coupling). Coupling has no other e ect than...

Persistent link: https://www.econbiz.de/10012141891

Decision-making traits and states as determinants of risky choices

Gärtner, Manja; Tinghög, Gustav; Västfjäll, Daniel - 2019

We test the effects of dual processing differences in both individual traits and decision states on risk taking. In an experiment with a large representative sample (N = 1,832), we vary whether risky choices are induced to be based on either emotion or reason, while simultaneously measuring...

Persistent link: https://www.econbiz.de/10012141901

School choice and loss aversion

Meisner, Vincent; von Wangenheim, Jonas - 2019

Extensive evidence suggests that participants in the direct student-proposing deferred-acceptance mechanism (DSPDA) play dominated strategies. In particular, students with low priority tend to misrepresent their preferences for popular schools. To explain the observed data, we introduce...

Persistent link: https://www.econbiz.de/10012290339

Report-dependent utility and strategy-proofness

Meisner, Vincent - 2021

Despite the truthful dominant strategy, participants in strategy-proof me- chanisms submit manipulated preferences. In our model, participants dislike rejections and enjoy the confirmation from getting what they declared most desirable. Formally, the payoff from a match decreases in its position...

Persistent link: https://www.econbiz.de/10012653514

Show What You Risk - Norms for Risk Taking

Grimm, Stefan - 2018

Most economic decisions are embedded in a specific social context. In many such contexts, individual choices are influenced by their observability due to underlying social norms and social image concerns. This study investigates the impact of choices being observed, compared to anonymity of...

Persistent link: https://www.econbiz.de/10011932984