Dread Aversion and Economic Preferences

Comparative Risk Aversion for State-Dependent Preferences

Learning Preferences Under Noise and Loss Aversion: An Optimization Approach

Ambiguity Aversion, Robustness, and the Variational Representation of Preferences

We characterize in the Anscombe Aumann framework the preferences for which there are a utility function u on outcomes and an ambiguity index c on the set of probabilities on the states of the world such that, for all acts f and g, f % g , min p Z u (f) dp+ c (p) min p Z u (g) dp+ c (p) : The function u represents the decision maker’s risk attitudes, while the index c captures his ambiguity atti...

Inequality Aversion , Efficiency , and Maximin Preferences in Simple Distribution Experiments

We present simple one-shot distribution experiments comparing the relative importance of efficiency, maximin preferences and inequality aversion, as well as the relative performance of the fairness theories by Bolton and Ockenfels (2000) and Fehr and Schmidt (1999). While the Fehr and Schmidt model performs better in a direct comparison, this appears to be due to being in line with maximin pref...

Ambiguity Aversion, Malevolent Nature, and the Variational Representation of Preferences∗

In the classic Anscombe and Aumann decision setting, we give necessary and sufficient conditions that guarantee the existence of a utility function u on outcomes and an ambiguity index c on the set of all probabilities on the states of the world such that, for all acts f and g, f % g ⇔ min p (∫ u (f) dp+ c (p) ) ≥ min p (∫ u (g) dp+ c (p) ) . The function u represents the decision maker’s risk ...