Weband MaxMin expected utility). Our main results are the following. Underreaction to probabilities modifications is in general independent from standard risk aversion and prudence. In models involving probabilities transformation functions, it is characterized by the slope of the prob-ability transformation function. In MaxMin expected utility ... WebThe alpha-maxmin model is a prominent example of preferences under Knightian uncertainty as it allows to distinguish ambiguity and ambiguity attitude. These preferences are dynamically inconsistent for nontrivial versions of alpha. In this paper, we derive a recursive, dynamically consistent version of the alpha-maxmin model.

α - Maxmin Expected Utility with Non-Unique Prior

Web1 jul. 2014 · The Maxmin Expected Utility decision rule suggests that the decision maker can be characterized by a utility function and a set of prior probabilities, such that … Webthe maximization of subjective expected utility over a convex set of subjective probability measures. Yet, Drèze’s theory is different from the maxmin expected utility model in its mo-tivation and interpretation. Drèze’s motivation is to model decision making in the presence of moral hazard, not ambiguity aversion. kya cantante

Equilibrium Strategies for Alpha-Maxmin Expected Utility …

Web1 apr. 2024 · Maxmin Expected Utility was first axiomatized by Gilboa and Schmeidler (1989) in an Anscombe–Aumann setup Anscombe and Aumann (1963) which includes … Webto the application of the maxmin expected utility model to agency theory and, within a simple model, examine some welfare implications. Section 6 contains a brief … Webthe maximization of subjective expected utility over a convex set of subjective probability measures. Yet, Drèze’s theory is different from the maxmin expected utility model in its mo-tivation and interpretation. Drèze’s motivation is to model decision making in the presence of moral hazard, not ambiguity aversion. kya carpet