Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10480443 | Mathematical Social Sciences | 2005 | 25 Pages |
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.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Simon Grant, John Quiggin,