Increasing Uncertainty: A Definition

Simon Grant and John Quiggan
Additional contact information
John Quiggan: U of Queensland
Authors registered in the RePEc Author Service: John Quiggin

Working Papers from Rice University, Department of Economics

Abstract: We present a definition of increasing uncertainty, in which an elementary increase in the uncertainty of any act corresponds to the addition of an `elementary bet' that increases consumption by a fixed amount in (relatively) `good' states and decreases consumption by a fixed (and possibly different) amount in (relatively) `bad' states. This definition naturally gives rise to a dual definition of comparative aversion to uncertainty. We characterize this definition for a popular class of generalized models of choice under uncertainty.

JEL-codes: C72 (search for similar items in EconPapers)
Date: 2004-05
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.luiss.it/hey/ambiguity/papers/Grant_Quiggin_2005.pdf

Related works:
Journal Article: Increasing uncertainty: a definition (2005)
Working Paper: Increasing Uncertainty: A Definition (2004)
Working Paper: Increasing Uncertainty: A Definition (2004)
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:ecl:riceco:2002-11

Access Statistics for this paper

More papers in Working Papers from Rice University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by (workingpapers@econlit.org).