Efficient Allocations under Ambiguous Model Uncertainty

Pre-print, Working paper: We investigate consequences of ambiguity on efficient allocations in an exchange economy. Ambiguity is embodied in the model uncertainty perceived by the consumers: they are unsure what would be the appropriate probability measure to apply to evaluate consumption and keep in consideration a set P of alternative probabilistic laws. Consumers are heterogeneously ambiguity averse with smooth

Author(s)

Chiaki Hara, Sujoy Mukerji, Frank Riedel, Jean-Marc Tallon

Date of publication
  • 2022
Internal reference
  • PSE Working Papers n°2022-36
Pages
  • 67 p.
Version
  • 1