Differentiating ambiguity: an expository note
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Ghirardato et al. J Econ Theory 118:133–173, 2004 propose a method for distinguishing between perceived ambiguity and the decision-maker’s reaction to it. They study a general class of preferences which they refer to as invariant biseparable. This class includes CEU and MEU. This note presents some examples which illustrate their results.
KeywordsAmbiguity Multiple priors Invariant biseparable preferences Hurwicz preferences
JEL Classification NumberD81
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