Research
Active Research
Comparative Ambiguity Attitudes (Job Market Paper 2019-2020) PDF
Abstract: I propose a new behavioral definition of comparative ambiguity aversion, which, in contrast to standard definitions, establishes a separation between ambiguity attitude and risk attitude. Ambiguity attitudes are compared using a notion called matching probability, which reflects how an agent reduces ambiguity to risk. My definition enables well-accepted formal characterizations without requiring the agents under comparison to have the same von Neumann-Morgenstern utility; results are established for a wide range of models, including, in particular, maxmin expected utility (Gilboa and Schmeidler 1989) and the smooth ambiguity model (Klibanoff, Marinacci, and Mukerji 2005). These results naturally point to a decomposition of differences in willingness to pay into a factor attributable to differences in ambiguity attitude, and another to risk attitude. The decomposition is easily implementable and it is free of structural or parametric assumptions. I also use the main idea to formulate and characterize absolute and relative ambiguity attitude in isolation from risk attitude. This paper therefore expands the scope of comparative ambiguity attitudes, which is fundamentally useful for theoretical results as well as for empirical tests.
Verifiable Uncertainty (with Jingyuan Li and Ilia Tsetlin), PDF, submitted
Consumption of Values (with Itzhak Gilboa and Stefania Minardi), PDF, submitted
Likelihood Region: An Axiomatic Approach (with Itzhak Gilboa and Stefania Minardi)
Beyond Expected Utility (with Mohammed Abdellaoui, Emmanuel Kemel, and Ferdinand Vieider)
Publications
Rationality and Zero Risk (with Itzhak Gilboa and Stefania Minardi), Journal of the European Economic Association, 2024. PDF
Rank-Dependent Utility under Multiple Priors, Management Science 2022. PDF
Probabilities as Similarity-Weighted Frequencies: A Comment, Econometrica (Online 2020). PDF
Rational Status Quo (with Itzhak Gilboa), Journal of Economic Theory, May 2019, Vol 181, pp. 289-308. PDF