Absolute and Relative Ambiguity Attitudes

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Tác giả: Francesco Fabbri, Giulio Principi, Lorenzo Stanca

Ngôn ngữ: eng

Ký hiệu phân loại: 201.7 Attitudes of religions toward social issues formerly 291.171

Thông tin xuất bản: 2024

Mô tả vật lý:

Bộ sưu tập: Báo, Tạp chí

ID: 202895

We represent preferences that exhibit absolute or relative attitudes towards ambiguity without assuming convexity of preferences. Our analysis is motivated by the recent experimental evidence by Baillon and Placido (2019) indicating that ambiguity becomes more tolerable as individuals are better off overall. Decreasing absolute ambiguity aversion is characterized by constant superadditive certainty equivalents and admits an act-dependent variational representation (Maccheroni et al., 2006). Decreasing relative ambiguity aversion relates to positive superhomogeneity and admits an act-dependent confidence preference representation (Chateauneuf and Faro, 2009). We apply our characterizations to retrieve a classic risk sharing result on the efficiency of trade and subjective beliefs of the individuals (Rigotti et al., 2008).
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