Ambiguity is pervasive in many environments and is increasingly being introduced into economic and financial models. This paper characterises ambiguity in the form of newly defined Choquet random walks: discrete-time binomial trees with capacities instead of exact probabilities on their...

Choquet capacities have been used to represent decision makers’ beliefs in order to generalise the expected utility approach. Conditional capacities have to be defined for dynamic choice situations where information may modify the decision maker future beliefs. Several updating rules have been...

This paper studies learning under multiple priors by characterizing the decision maker's attitude toward information. She is incredulous if she integrates new information with respect to only those measures that minimizes the likelihood of the new information and credulous if she uses the...