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A Bayesian Approach to Uncertainty Aversion Author info | Abstract | Publisher info | Download info | Related research | Statistics Feltkamp, Vincent
Halevy, Yoram
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The Ellsberg Paradox demonstrates that people's belief over uncertain events might not be representable by subjective probability. We show that if a risk averse decision maker, who has a well defined Bayesian prior, perceives an Ellsberg type decision problem as possibly composed of a bundle of several positively correlated problems - she will be uncertainty averse. We generalize this argument and derive sufficient conditions for uncertainty aversion.
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Paper provided by Microeconomics.ca Website in its series Micro Theory Working Papers with number
halevy-04-02-13-07-48-37.
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Date of creation: 13 Feb 2004Date of revision:
08 Jun 2008Handle: RePEc:ubc:pmicro:halevy-04-02-13-07-48-37Contact details of provider:
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Keywords: Ellsberg Paradox ; rule rationality ; ambiguity aversion ; risk aversionm subjective probability ; reduction of compound lotteries ; Other versions of this item:
Article Paper Vincent Feltkamp & Yoram Halevy, 1999.
"- A Bayesian Approach To Uncertainty Aversion ,"
Working Papers. Serie AD
1999-14, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
[Downloadable!] Yoram Halevy & Vincent Feltkamp, .
"A Bayesian Approach to Uncentainty Aversion ,"
CARESS Working Papres
99-03, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
[Downloadable!] Yoram Halevy & Vincent Feltkamp, .
"A Bayesian Approach to Uncentainty Aversion ,"
Penn CARESS Working Papers
f17f3e2c6ad93e4b53fd58fc9, Penn Economics Department.
[Downloadable!] Vincent Feltkamp & Yoram Halevy, 2000.
"A Bayesian Approach to Uncertainty Aversion ,"
Econometric Society World Congress 2000 Contributed Papers
1125, Econometric Society.
[Downloadable!] Find related papers by JEL classification: D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
This paper has been announced in the following NEP Reports :
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Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Halevy, Yoram & Ozdenoren, Emre, 2008.
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Micro Theory Working Papers
yoram_halevy-2008-7, Microeconomics.ca Website, revised 17 Jun 2008.
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