Ambiguity aversion and the absence of indexed debt

If agent's (subjective) beliefs are ambiguous then the beliefs may not be represented by a unique probability distribution in the standard Bayesian fashion but instead by a set of probabilities. Roughly put, an ambiguity averse decision maker evaluates an act by the minimum expected value that...

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Bibliographic Details
Main Authors: Mukerji, S, Tallon, J
Format: Working paper
Published: University of Oxford 2000