Belief hedges: Measuring ambiguity for all events and all models

A-Tier
Journal: Journal of Economic Theory
Year: 2021
Volume: 198
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

We introduce belief hedges, i.e., sets of events whose uncertain subjective beliefs neutralize each other. Belief hedges allow us to measure ambiguity attitudes without knowing those subjective beliefs. They lead to improved ambiguity indexes that are valid under all popular ambiguity theories. Our indexes can be applied to real-world problems and do not require expected utility for risk or commitments to two-stage optimization, thereby increasing their descriptive power. Belief hedges make ambiguity theories widely applicable.

Technical Details

RePEc Handle
repec:eee:jetheo:v:198:y:2021:i:c:s0022053121001708
Journal Field
Theory
Author Count
4
Added to Database
2026-01-24