Throughout the financial literature, there is a great deal of debate about the nature of
investors' risk preferences. In an ever-changing world, the main schools of knowledge …

The flood insurance protection gap, the level of uninsured flood risk, is a problem faced by
many European countries and is expected to increase due to climate change. In some …

We examine the impact of ambiguity, or Knightian uncertainty, on the capital structure
decision, using a static tradeoff theory model in which agents are both ambiguity and risk …

Theoretically, wealthier people should buy less insurance, and should self-insure through
saving instead, as insurance entails monitoring costs. Here, we use administrative data for …

We provide a test of the axioms of certainty and weak certainty independence in models of
decision-making under subjective uncertainty. We show that it is through these two …

Based on the theoretical framework of expected utility with uncertain probabilities, this paper
uses actual prices of CSI300 and Hang Seng index to empirically measure ambiguity …

We demonstrate how the standard usage of the random incentive system in ambiguity
experiments eliciting certainty and probability equivalents might not be incentive compatible …

The α-MEU model and the smooth ambiguity model are two popular models in decision
making under ambiguity. However, the axiomatic foundations of these two models are not …

Abstract The standard Subjective Expected Utility model of decision-making implies that
information can never have a negative value ex-ante. Many ambiguity theories have since …

We study how changes in wealth affect ambiguity attitudes. We define a decision maker as
decreasing (resp., increasing) absolute ambiguity averse if he becomes less (resp., more) …