RECURSIVE AMBIGUITY AND MACHINA'S EXAMPLES

B-Tier
Journal: International Economic Review
Year: 2015
Volume: 56
Issue: 1
Pages: 55-61

Authors (2)

David Dillenberger (not in RePEc) Uzi Segal (Boston College)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Machina (American Economic Review 99 (2009), 385–392; American Economic Review 104 (2014), 3814–40) lists a number of situations where Choquet expected utility, as well as other known models of ambiguity aversion, cannot capture plausible features of ambiguity attitudes. Most of these problems arise in choice over prospects involving three or more outcomes. We show that the recursive nonexpected utility model of Segal (International Economic Review 28 (1987), 175–202) is rich enough to accommodate all these situations and, moreover, that this can be done using the same functional form for all situations.

Technical Details

RePEc Handle
repec:wly:iecrev:v:56:y:2015:i:1:p:55-61
Journal Field
General
Author Count
2
Added to Database
2026-01-29