INSEAD Library

Includes bibliographical references and index

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Uncertainty in Economic Theory Essays in honor of David Schmeidler's 65th birthday Contents List of contributors Preface xii xv PART I Theory 1 Introduction ITZHAK GILBOA 1 3 2 Preference axiomatizations for decision under uncertainty PETER P. WAKKER 20 3 Defining ambiguity and ambiguity attitude PAOLO GHIRARDATO 36 4 Introduction to the mathematics of amibiguity MASSIMO MARINACCI AND LUIGI MONTRUCCHIO 46 5 Subjective probability and expected utility without additivity DAVID SCHMEIDLER 108 6 Maxmin expected utility with non-unique prior ITZHAK GILBOA AND DAVID SCHMEIDLER 125 7 A simple axiomatization of nonadditive expected utility RAKESH SARIN AND PETER P. WAKKER 136 8 Updating ambiguous beliefs ITZHAK GILBOA AND DAVID SCHMEIDLER 155 x Contents 9 A definition of uncertainty aversion LARRY G. EPSTEIN 171 10 Ambiguity made precise: a comparative foundation PAOLO GHIRARDATO AND MASSIMO MARINACCI 209 11 Stochastically independent randomization and uncertainty aversion PETER KLIBANOFF 244 12 Decomposition and representation of coalitional games MASSIMO MARINACCI 261 PART II Applications 13 An overview of economic applications of David Schmeidler's models of decision making under uncertainty SUJOY MUKERJI AND JEAN-MARC TALLON 281 283 14 Ambiguity aversion and incompleteness of contractual form SUJOY MUKERJI 303 15 Ambiguity aversion and incompleteness of financial markets SUJOY MUKERJI AND JEAN-MARC TALLON 336 16 A quartet of semigroups for model specification, robustness, prices of risk, and model detection EVAN W. ANDERSON, LARS PETER HANSEN, AND THOMAS J. SARGENT 364 17 Uncertainty aversion, risk aversion, and the optimal choice of portfolio 419 JAMES DOW AND SERGIO RIBEIRO DA COSTA WERLANG 18 Intertemporal asset pricing under Knightian uncertainty LARRY G. EPSTEIN AND TAN WANG 429 19 Sharing beliefs: between agreeing and disagreeing ANTOINE BILLOT, ALAIN CHATEAUNEUF, ITZHAK GILBOA, AND JEAN-MARC TALLON 472 Contents xi 20 Equilibrium in beliefs under uncertainty KIN CHUNG LO 483 21 The right to remain silent JOSEPH GREENBERG 522 22 On the measurement of inequality under uncertainty ELCHANAN BEN-PORATH, ITZHAK GILBOA, AND DAVID SCHMEIDLER 531 Index 541