An overview of economic applications of David Schmeidler`s models of decision making under uncertainty

Sujoy Mukerji () and Jean-Marc Tallon ()

No 165, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: This paper surveys some economic applications of the decision theoretic framework pioneered by David Schmeidler. We have organized the discussion around three themes: financial markets, contractual arrangements and game theory. The first section discusses papers that have contributed to a better understanding of financial market outcomes based on ambiguity aversion. The second section focusses on contractual arrangements and is divided into two sub-sections. The first sub-section reports research on optimal risk sharing arrangements, while in the second sub-section, discusses research on incentive contracts. The third section concentrates on strategic interaction and reviews several papers that have extended different game theoretic solution concepts to settings with ambiguity averse players. A final section deals with several contributions that are linked only at a formal level, in terms of the pure mathematical structures involved, with Schmeidler`s models of decision making under ambiguity. The contributions involve issues such as, inequality measurement, intertemporal decision making and multi-attribute choice.

Keywords: Ellsberg Paradox; ambiguity aversion; uncertainty aversion. (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2003
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: An overview of economic applications of David Schmeidler`s models of decision making under uncertainty (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:oxf:wpaper:165

Access Statistics for this paper

More papers in Economics Series Working Papers from University of Oxford, Department of Economics
Contact information at EDIRC.
Series data maintained by Mark George ().