making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium. … the resulting warming over the next decades and centuries highly uncertain. We quantify how this uncertainty changes the …

We present a preference foundation for Chance Theory (CT), a model of decision making under uncertainty where the … the expected value of a lottery to the latter, so they are weakly risk averse. Besides explaining behavioral … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …