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Aggregation of Monotonic Bernoullian Archimedean preferences : Arrovian impossibility results

Herzberg, Frederik - 2013

proposed a very general axiomatisation of preferences in the presence of ambiguity, viz. Monotonic Bernoullian Archimedean (MBA …

Persistent link: https://www.econbiz.de/10010187944

Unanimity under ambiguity

Fabrizi, Simona; Lippert, Steffen; Pan, Addison; Ryan, … - 2024

all symmetric equilibria of these voting games. Second, we show that ambiguity may drastically undermine McLennan's (1998 …) results on decision quality: unlike in the absence of ambiguity, the ex ante optimal symmetric strategy profile need not be an …

Persistent link: https://www.econbiz.de/10014487011

Navigating ambiguity : imprecise probabilities and the updating of disease risk beliefs

Kerwin, Jason; Pandey, Divya - 2023

Probabilistic risk beliefs are key drivers of economic and health decisions, but people are not always certain about their beliefs. We study these "imprecise probabilities", also known as ambiguous beliefs. We show that imprecision is measurable separately from the levels of risk beliefs. People...

Persistent link: https://www.econbiz.de/10014390526

The evolutionary stability of optimism, pessimism and complete ignorance

Schipper, Burkhard - 2005

We provide an evolutionary foundation to evidence that in some situations humans maintain optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and maximize...

Persistent link: https://www.econbiz.de/10010366542

The evolutionary stability of optimism, pessimism, and complete ignorance

Schipper, Burkhard - 2019

We provide an evolutionary foundation to evidence that in some situations humans maintain either optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and...

Persistent link: https://www.econbiz.de/10012101422

Financial ambiguity and oil prices

Ayoub, Mahmoud; Qadan, Mahmoud - In: Financial innovation : FIN 10 (2024), pp. 1-23

Recent theoretical developments in economics distinguish between risk and ambiguity (Knightian uncertainty). Using … state-of-the-art methods with intraday stock market data from February 1993 to February 2021, we derive financial ambiguity … ambiguity carries important information about future oil returns and volatility perceived by investors. We validate these …

Persistent link: https://www.econbiz.de/10015361650

Degree centrality, von Neumann-Morgenstern expected utility and externalities in networks

Brink, René van den; Rusinowska, Agnieszka - 2023

This paper aims to connect the social network literature on centrality measures with the economic literature on von Neumann-Morgenstern expected utility functions using cooperative game theory. The social network literature studies various concepts of network centrality, such as degree,...

Persistent link: https://www.econbiz.de/10014369587

The Source of Uncertainty in Probabilistic Preferences Over Gambles

Charles-Cadogan, G. - 2012

inapplicable to ambiguity aversion. Third, when unobserved probability distributions are constrained by partially revealed …

Persistent link: https://www.econbiz.de/10013113294

The degree measure as utility function over positions in networks

Brink, René van den; Rusinowska, Agnieszka - 2017

In this paper, we connect the social network theory on centrality measures to the economic theory of preferences and utility. Using the fact that networks form a special class of cooperative TU-games, we provide a foundation for the degree measure as a von Neumann-Morgenstern expected utility...

Persistent link: https://www.econbiz.de/10011688772

Expected Utility Theory and Inner and Outer Measures of Loss Aversion

Charles-Cadogan, G. - 2018

We introduce a weak rank dependent utility (RDU) model, with one extra parameter compared to the canonical expected utility (EUT) model, which makes many of the same predictions as cumulative prospect theory (CPT). The model extends a set of nonconvex preferences to its maximal inner convex...

Persistent link: https://www.econbiz.de/10012936192