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.
URL of the HAL notice
Version
- 1