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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
777
are also observed). A first, general representation evaluates such a pair by a maxmin cri-
terion applied to a suitably selected subset of P. Under additional assumption, an elegant
representation is obtained for finite state spaces, in which (P, f ) is evaluated according
to a weighted average of the minimum expected utility over P and the expected utility
with respect to the Steiner point of P (a construct which generalizes the notion of center
of gravity). Wang (2003) instead considers preferences over tuples (P, p, f ), where P is
a set of probability distributions, p is a reference prior (a distinguished ...
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Publisher Resources

ISBN: 9780444536853