Definitions of ambiguous events and the smooth ambiguity model
We examine a variety of preference-based definitions of ambiguous events in the context of the smooth ambiguity model. We first consider the definition proposed in Klibanoff, Marinacci, and Mukerji (2005) based on the classic Ellsberg two-urn paradox (Ellsberg (1961)), and show that it satisfies se...
| Main Authors: | , , |
|---|---|
| Format: | Working paper |
| Published: |
University of Oxford
2011
|