EconPapers    
Economics at your fingertips  
 

COPING RATIONALLY WITH AMBIGUITY: ROBUSTNESS VERSUS AMBIGUITY-AVERSION

Klaus Nehring

Economics and Philosophy, 2009, vol. 25, issue 3, 303-334

Abstract: Al-Najjar and Weinstein (2009) argue that the extant literature on ambiguity aversion is not successful in accounting for Ellsberg choices as rational responses to ambiguity. We concur, and propose that rational choice under ambiguity aims at robustness rather than avoidance of ambiguity. A central argument explains why robust choice is intrinsically context-dependent and legitimately violates standard choice consistency conditions. If choice consistency is forced, however, ambiguity-aversion emerges as a semi-rational response to ambiguity.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
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: https://EconPapers.repec.org/RePEc:cup:ecnphi:v:25:y:2009:i:03:p:303-334_99

Access Statistics for this article

More articles in Economics and Philosophy from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Keith Waters ().

 
Page updated 2020-06-27
Handle: RePEc:cup:ecnphi:v:25:y:2009:i:03:p:303-334_99