Increasing uncertainty: a definition
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.
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Volume (Year): 49 (2005)
Issue (Month): 2 (March)
Pages: 117141
Handle:  RePEc:eee:matsoc:v:49:y:2005:i:2:p:117141 
Contact details of provider:  Web page: http://www.elsevier.com/locate/inca/505565

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