games, beauty contests, and their applications. We elaborate on the distinct effects of strategic uncertainty relative to … fundamental uncertainty. We demonstrate the potential fragility of workhorse macroeconomic models to relaxations of common …

tradeoff between rigidity and flexibility in a trading environment with incomplete contracts and ex ante uncertainty about the …

tradeoff between rigidity and flexibility in a trading environment with incomplete contracts and ex ante uncertainty about the …

This paper examines the behavior of the regret-averse multinational firm under exchange rate uncertainty. The … less, sells more domestically, and export less abroad under uncertainty than under certainty holds if the multinational … domestically, and export more abroad under uncertainty than under certainty, particularly when the multinational firm is …

consistent with two prominent models of decision making under uncertainty: variational preferences and smooth ambiguity. The …

We present a model of firm investment under uncertainty and partial irreversibility in which uncertainty is represented … by a jump diffusion. This allows to represent both the continuous Gaussian volatility and the discontinuous uncertainty … related to information arrival, sudden changes and large shocks. The model shows how both sources of uncertainty negatively …

-world quantities with transparent uncertainty quantification, than when based on “optimal” model-land quantities obtained from …

This chapter reviews developments in the theory of decision making under risk and uncertainty, focusing on models that …-dependent utility models and cumulative prospect theory. The second part reviews theories of decision making under uncertainty that …