parties use a common language, but do not share a common understanding of the world, leading to ambiguity in both syntactic … and semantic forms. In contractual relationships, ambiguity leads to disagreement and disputes. We show that the agents …

In Ghirardato, Macheroni and MArcinaccri (GMM) propose a method for distinguishing between percieved ambiguity and the … subclass of a-MEU preferences. We show that for Hurwicz preferences the proposed measure of ambiguity depends on parameters … which intuitively reflect ambiguity-attitude. Furthermore, any a-MEU preferences which satisfy the CEU axioms, satisfy GMM …

In [7] Ghirardato, Macheroni and Marinacci (GMM) propose a method for distinguishing between perceived ambiguity and …

Raiffa (1961) has suggested that ambiguity aversion will cause a strict preference for randomization. We show that … for a dynamically-consistent ambiguity averse preference relation to exhibit a strict preference for some ex post … randomizations. We argue that our analysis throws some light on the recent debate about paradoxes for the smooth model of ambiguity …

This paper studies how updating affects ambiguity attitude. In particular we focus on generalized Bayesian updating of … the Jaffray–Philippe sub-class of Choquet Expected Utility preferences. We find conditions for ambiguity attitude to be … the same before and after updating. A necessary and sufficient condition for ambiguity attitude to be unchanged when …

We give a formal treatment of optimal risk sharing contracts in the face of ambiguity. The central idea is that … ambiguity in a contract arises from contractual clauses that are interpreted by the parties in different ways. The cost of … ambiguity is represented in terms of dispute costs. Taking the potential for dispute into account, we find that risk averse …