The standard Bayesian model implies that information can never have a negative value. We put this implication to the proof. Our paper provides the first test of the value (positive or negative) of information under uncertainty. We show that the "Bayesian implication" stands in conflict with the...

We propose and axiomatically characterize a representation of ambiguity sensitive preferences. The distinguishing feature of our axiomatization is that we do not require preferences to be event-wise separable over any domain of acts. Even without any such separability restrictions, we are able...

We propose and axiomatize a decision model of social preferences under risk that considers decision makers for whom generous behavior is driven largely by an egoistical desire to perceive themselves as prosocial. Our model considers a setup with a decision maker (DM) and one other individual. It...