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 …

A game-theoretic framework that allows for explicitly randomized strategies is used to study the e ect of ambiguity … predictions of two player games with ambiguity averse and with ambiguity neutral players are observationally equivalent. This … beliefs to the context of ambiguity aversion yields substantially di erent predictions even for the case with just two players. …

We develop a theory of optimal stopping problems under ambiguity in continuous time. Using results from (backward … from the agent's ambiguity aversion. We show how to use these general results for search problems and American Options. …

We consider optimal stopping problems for ambiguity averse decision makers with multiple priors. In general, backward …

We examine the impact of ambiguity on economic behaviour. We present a relatively non-technical account of ambiguity … and show how it may be applied in economics. Optimistic and pessimistic responses to ambiguity are formally modelled. We … also examine the effects of ambiguity on peace processes. It is shown that ambiguity can act to select equilibria in …

differences lies in the dichotomy between first-order and second-order ambiguity aversion which I define here. My definition and …-order ambiguity aversion a positive exposure to ambiguity is optimal if and only if there is a subjective belief such that the act …´s expected outcome is positive. With first-order ambiguity aversion, zero exposure to ambiguity can be optimal. Examples in …

In this paper we consider the effect of ambiguity on the private provision of public goods. Equilibrium is shown to …