A Note on Comparative Ambiguity Aversion and Justifiability

S-Tier
Journal: Econometrica
Year: 2016
Volume: 84
Pages: 1903-1916

Authors (4)

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

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

Abstract

We consider a decision maker who ranks actions according to the smooth ambiguity criterion of Klibanoff, Marinacci, and Mukerji (2005). An action is justifiable if it is a best reply to some belief over probabilistic models. We show that higher ambiguity aversion expands the set of justifiable actions. A similar result holds for risk aversion. Our results follow from a generalization of the duality lemma of Wald (1949) and Pearce (1984).

Technical Details

RePEc Handle
repec:wly:emetrp:v:84:y:2016:i::p:1903-1916
Journal Field
General
Author Count
4
Added to Database
2026-01-24