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Persistent link: https://www.econbiz.de/10014505130
We compare Bayesian with the two non-Bayesian updating under ambiguity in its model specification and numerical implications. For an ambiguity averse (seeking) decision maker, we find that Gilboa and Schmeidler (GS) updating leads to a lower (higher) certainty equivalent (CE) than...
Persistent link: https://www.econbiz.de/10014346172