In this paper, a two-stage evaluation (TSE) model for decision making under ambiguity is
proposed. Events in state space are classified into risky and ambiguous events, which …

The presentation of objective information should not affect a rational decision‐maker;
however, in practice, it often does. This paper studies the effect of the framing of …

In insurance industry, product disclosure statements (PDSs) consist of descriptions of
uncertain contingencies by the insurance plans (eg,“hospital coverage”,“dental coverage” …

A relatively recent strand of economic literature studies the design of information. Classical
economic models analyze optimal decision-making (eg, profit-maximizing firms choosing …

Limited attention and similarity of some of the states of the world together may nudge an
agent to perceive the “grand world” as a collection of “small worlds”. We use this idea as an …

Financial companies often use disclosure statements (DSs) to categorize uncertain
contingencies into different sections (eg, a health insurance plan includes sections such as …

This paper studies how ambiguity affects identification of the state aggregation model–a
model with an agent that combines several states into an event in order to simplify decision …