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Results tagged with uncertainty
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user 4667
2
votes
Accepted
Consequentialist View of Risk
It is for instance sometimes argued that the additional layer of uncertainty which is added in situation B would be a legitimate reason for risk-averse individuals to strictly prefer situation A. …
- 3,262
12
votes
Would insurance plan be necessary if we had instant access to credit?
As Dave Harris' points out in his comment, I assume that your question deals with events that do not compromise the individual's ability to work, which would prevent her from taking on debt.
Let's ta …
- 3,262
5
votes
Accepted
Decision Theory Question: Existence and uniqueness of the certainty equivalent of p
Your notation is a bit misleading: it would be better to write $\mathbb{E}u(p)$ or $U(p)$ for the expected-utility associated with $p$ instead of $u(p)$, and $u(\mathbb{E}p)$ for the utility of the ex …
- 3,262
3
votes
Accepted
Anscombe-Aumann Acts and Lotteries
You are right, but to make sure that the odds are really exogenous ("objective") you need to make sure that the subjective uncertainty has no bite here. …
- 3,262