The paper examines how the timing of decisions shapes outcomes in coordination settings. Theoretically, the outcomes become predictable and efficient when decisions are made sequentially rather than simultaneously. Our experimental evidence shows that sequential moves promote remarkably high...

This paper delves into a multi-player non-renewable resource extraction differential game model, where the duration of the game is a random variable with a composite distribution function. We first explore the conditions under which the cooperative solution also constitutes a Nash equilibrium,...

Ellsberg's paradox shows that people prefer gambles with known probabilities to those where they are uncertain. Standard explanations rule out risk aversion by appealing to Savage's (1954) subjective expected utility theory but this axiomatic approach leaves open other interpretations of the...

We review the design and communication of monetary policy strategies that take into account risks and uncertainty. A key element in a robust monetary strategy is the concept of risk management, which is the weighing of key risks when setting policy. When risks to the outlook are balanced, the...

Multi-Criteria Decision-Making (MCDM) methods, particularly TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) and VIKOR (VIsekriterijumska optimizacija i KOmpromisno Resenje) (Multicriteria Optimization and Compromise Solution), are extensively used in logistics for...

I study the problem of a decision maker choosing a policy that allocates treatment to a heterogeneous population on the basis of experimental data that includes only a subset of possible treatment values. The effects of new treatments are partially identified by shape restrictions on treatment...

We construct a model to examine the time-varying ambiguity of investors. When ambiguity occurs concerning recent news, long (short) position investors who are averse to ambiguity reduce (increase) their holdings, resulting in price drops (rises). We empirically analyze how the "two sessions," a...

How firms respond to uncertainty determines economic policy effectiveness. Using Brexit as a natural experiment, I document that flexible price-setters - those most responsive to monetary policy - paradoxically reduce adjustment more than sticky firms under uncertainty. This "curse of...

This study explores the critical yet often misunderstood distinction between risk and uncertainty. The research examines how knowledge and expertise can contribute to an illusion of control in uncertain environments, leading decision-makers to misclassify uncertainty as risk. This...

This paper investigates whether investments in data affect firms’ R&D and whether the two are productivity-enhancing complements. We conceptualise and test whether investments in data reduce market uncertainty, thereby mitigating the inherent uncertainty of R&D and enhancing research and...

This study examines the impact of price consciousness and deal proneness on impulsive buying behavior and the Fear of Missing Out (FoMO) in the context of online clothing shopping, with a particular focus on post-purchase regret. Data were collected from 230 participants through an online survey...

The aim of this study is to analyze the factors that influence consumer referents or reference points and their interaction during the decision-making process, along with the principles of prospect theory in the metaverse with market and retail examples. We conducted an integrative literature...

Escalating uncertainty and policy shifts are reshaping the fiscal outlook. Global public debt projections have been revised upwards, while tariffs, uncertainty and market volatility, increased defense spending, and challenging foreign aid are intensifying risks. Countries must implement gradual...

Comonotonicity (''same variation'') of random variables minimizes hedging possibilities and has been widely used, e.g., in Gilboa and Schmeidler's ambiguity models. This paper investigates anticomonotonicity (''opposite variation''; abbreviated ''AC''), the natural counterpart to comonotonicity....

This study applies the concept of regret in decision-making under uncertainty to an energy system optimization model to identify optimal robust and stochastic solutions amongst several design options. The approach is demonstrated on the case study of Accra, Ghana, considering uncertainties...