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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
769
expectation and adjustment terms. They adopt the Complementary Independence
axiom, and also require a form of uncertainty aversion. See also Grant and Polak
(2013).
13.5.7 Variational and Multiplier Preferences
The Uncertainty Aversion Axiom of Section 13.5.1 is common to a broad class of pref-
erence models. In addition to MEU preferences, suitable parameterizations of smooth
ambiguity, Ergin-Gul, and VEU preferences also satisfy it. As we will discuss in Section
13.6, its interpretation is not entirely straightforward, or uncontroversial; on the other
hand, the fact that it is a familiar and analytically con ...
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Publisher Resources

ISBN: 9780444536853