On the Smooth Ambiguity Model: A Reply
AbstractEpstein (2009) describes three Ellsberg-style thought experiments and argues that they pose difficulties for the smooth ambiguity model of decision making under uncertainty developed by Klibanoff, Marinacci and Mukerji (2005).ï¿½ We revisit these thought exeperiments and find, to the contrary, that they either point to strengths of the smooth ambiguity model compared to other models, such as the maximum expected utility model (Gilboa and Schmeidler, 1989), or, in the case of one thought experiment, raise criticisms that apply equally to a broad range of current ambiguity models.
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Bibliographic InfoArticle provided by Econometric Society in its journal Econometrica.
Volume (Year): 80 (2012)
Issue (Month): 3 (05)
Other versions of this item:
- Peter Klibanoff & Massimo Marinacci & Sujoy Mukerji, 2011. "On the Smooth Ambiguity Model: A Reply," Working Papers 410, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Sujoy Mukerji & Peter Klibanoff, 2009. "On the Smooth Ambiguity Model: A Reply," Economics Series Working Papers 449, University of Oxford, Department of Economics.
- Peter Klibano & Massimo Marinacci & Sujoy Mukerji, 2009. "On the Smooth Ambiguity Model: A Reply," Levine's Working Paper Archive 814577000000000344, David K. Levine.
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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