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

We propose and axiomatically characterize a representation of ambiguity sensitive preferences. The distinguishing … maker exhibits a consistent tradeoff between risk and ambiguity concerns. Under our representation of her preferences, any … ambiguity. …

We relate time-varying aggregate ambiguity (V-VSTOXX) to individual investor trading. We use the trading records of … an increase in ambiguity is associated with increased investor activity. It also leads to a reduction in risk …-taking which does not reverse over the following days. When ambiguity is high, the effect of sentiment looms larger. Survey …