An overview of economic applications of David Schmeidler`s models of decision making under uncertainty
This paper surveys some economic applications of the decision theoretic framework pioneered by David Schmeidler to model effects of ambiguity. We have organized the discussion principally around three themes: financial markets, contractual arrangements and game theory. The first section discusses pa...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2003
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| _version_ | 1797086383969402880 |
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| author | Mukerji, S Tallon, J |
| author_facet | Mukerji, S Tallon, J |
| author_sort | Mukerji, S |
| collection | OXFORD |
| description | This paper surveys some economic applications of the decision theoretic framework pioneered by David Schmeidler to model effects of ambiguity. We have organized the discussion principally around three themes: financial markets, contractual arrangements and game theory. The first section discusses papers that have contributed to a better understanding of financial market outcomes based on ambiguity aversion. The second section focusses on contractual arrangements and is divided into two sub-sections. The first sub-section reports research on optimal risk sharing arrangements, while in the second sub-section, discusses research on incentive contracts. The third section concentrates on strategic interaction and reviews several papers that have extended different game theoretic solution concepts to settings with ambiguity averse players. A final section deals with several contributions which while not dealing with ambiguity per se, are linked at a formal level, in terms of the pure mathematical structures involved, with Schmeidler’s models of decision making under ambiguity. These contributions involve issues such as, inequality measurement, intertemporal decision making and multi-attribute choice. |
| first_indexed | 2024-03-07T02:21:16Z |
| format | Working paper |
| id | oxford-uuid:a3fe5175-0e42-4f25-8611-fda429179888 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T02:21:16Z |
| publishDate | 2003 |
| publisher | Department of Economics (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:a3fe5175-0e42-4f25-8611-fda4291798882022-03-27T02:30:56ZAn overview of economic applications of David Schmeidler`s models of decision making under uncertaintyWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:a3fe5175-0e42-4f25-8611-fda429179888EnglishOxford University Research Archive - ValetDepartment of Economics (University of Oxford)2003Mukerji, STallon, JThis paper surveys some economic applications of the decision theoretic framework pioneered by David Schmeidler to model effects of ambiguity. We have organized the discussion principally around three themes: financial markets, contractual arrangements and game theory. The first section discusses papers that have contributed to a better understanding of financial market outcomes based on ambiguity aversion. The second section focusses on contractual arrangements and is divided into two sub-sections. The first sub-section reports research on optimal risk sharing arrangements, while in the second sub-section, discusses research on incentive contracts. The third section concentrates on strategic interaction and reviews several papers that have extended different game theoretic solution concepts to settings with ambiguity averse players. A final section deals with several contributions which while not dealing with ambiguity per se, are linked at a formal level, in terms of the pure mathematical structures involved, with Schmeidler’s models of decision making under ambiguity. These contributions involve issues such as, inequality measurement, intertemporal decision making and multi-attribute choice. |
| spellingShingle | Mukerji, S Tallon, J An overview of economic applications of David Schmeidler`s models of decision making under uncertainty |
| title | An overview of economic applications of David Schmeidler`s models of decision making under uncertainty |
| title_full | An overview of economic applications of David Schmeidler`s models of decision making under uncertainty |
| title_fullStr | An overview of economic applications of David Schmeidler`s models of decision making under uncertainty |
| title_full_unstemmed | An overview of economic applications of David Schmeidler`s models of decision making under uncertainty |
| title_short | An overview of economic applications of David Schmeidler`s models of decision making under uncertainty |
| title_sort | overview of economic applications of david schmeidler s models of decision making under uncertainty |
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