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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
Mark J. Machina and Marciano Siniscalchi
782
determining which events are unambiguous, is relatively straightforward for many
parametric models of preferences. For preferences that satisfy Certainty Independence
(e.g., CEU and MEU), Ghirardato et al. show that
C
is the Clarke (1983) differential of
the function that represents preferences, evaluated at 0. For instance, an expected utility
preference with prior μ has a single relevant prior, namely μ—a basic check that indi-
cates the soundness of the definition; a MEU preference with priors
C
has precisely
C
as
the set of relevant priors. Ghirardato and Siniscalchi (2012) provide a general character ...
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Publisher Resources

ISBN: 9780444536853