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Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
Ambiguity and Ambiguity Aversion
755
Lehrer (2012) axiomatizes a special class of MEU preferences in which the set
C
is
generated by a partially specified probability. Axiomatizations of MEU which do not
rely on horse-roulette acts, but require a rich outcome space, have been provided by
Casadesus-Masanell et al. (2000a,b) and Ghirardato et al. (2003).
13.5.2 Choquet Expected Utility/Rank-Dependent Expected Utility
Another important model of ambiguity aversion, proposed by Schmeidler (1989), is the
Rank-Dependent or Choquet model. Rather than capturing the individual’s perception of
ambiguity by means of a family of priors as in the MEU model, ...
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Publisher Resources

ISBN: 9780444536853