A Bayesian Approach to Uncertainty Aversion
نویسندگان
چکیده
منابع مشابه
A Bayesian Approach to Uncertainty Aversion
The Ellsberg paradox demonstrates that peoples belief over uncertain events might not be representable by subjective probability. We argue that Uncertainty Aversion may be viewed as a case of Rule Rationality. This paradigm claims that peoples decision making has evolved to simple rules that perform well in most regular environments. Such an environment consists of replicas of some basic si...
متن کاملCARESS Working Paper 99 - 03 A Bayesian Approach to Uncertainty Aversion 1 Yoram Halevy
The Ellsberg paradox demonstrates that people’s belief over uncertain events might not be representable by subjective probability. We relate this paradox to other commonly observed anomalies, such as a rejection of the backward induction prediction in the one-shot Ultimatum Game. We argue that the pattern common to these observations is that the behavior is governed by “rational rules”. These r...
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It is intuitive that decision-makers might have attitudes towards uncertainty just as they might have attitudes towards risk. However, it is only recently that this intuitive notion has been formalized and axiomatically characterized. We estimate the extent of uncertainty aversion in a manner that is parsimonious and consistent with theory. We demonstrate that one can jointly estimate attitudes...
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ژورنال
عنوان ژورنال: Review of Economic Studies
سال: 2005
ISSN: 0034-6527,1467-937X
DOI: 10.1111/j.1467-937x.2005.00339.x