Recursive Ambiguity and Machina's Examples

David Dillenberger () and Uzi Segal
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David Dillenberger: University of Pennsylvania

No 800, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: Machina (2009, 2012) lists a number of situations where standard models of ambiguity aversion are unable to capture plausible features of ambiguity attitudes. Most of these problems arise in choice over prospects involving three or more outcomes. We show that the recursive non-expected utility model of Segal (1987) is rich enough to accommodate all these situations.

Keywords: Ambiguity; Ellsberg paradox; Choquet expected utility; recursive non-expected utility (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2012-05-20
New Economics Papers: this item is included in nep-upt
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: RECURSIVE AMBIGUITY AND MACHINA'S EXAMPLES (2015)
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