Increasing uncertainty: A definition

Grant, Simon and Quiggin, John (2005) Increasing uncertainty: A definition. Mathematical Social Sciences, 49 2: 117-141. doi:10.1016/j.mathsocsci.2004.08.005


Author Grant, Simon
Quiggin, John
Title Increasing uncertainty: A definition
Journal name Mathematical Social Sciences   Check publisher's open access policy
ISSN 0165-4896
Publication date 2005-03
Sub-type Article (original research)
DOI 10.1016/j.mathsocsci.2004.08.005
Volume 49
Issue 2
Start page 117
End page 141
Total pages 25
Editor J.F. Laslier
Place of publication Amsterdam, Netherlands
Publisher Elsevier Science
Collection year 2005
Language eng
Subject C1
340103 Mathematical Economics
729999 Economic issues not elsewhere classified
Abstract We present a definition of increasing uncertainty, in which an elementary increase in the uncertainty of any act corresponds to the addition of an 'elementary bet' that increases consumption by a fixed amount in (relatively) 'good' states and decreases consumption by a fixed (and possibly different) amount in (relatively) 'bad' states. This definition naturally gives rise to a dual definition of comparative aversion to uncertainty. We characterize this definition for a popular class of generalized models of choice under uncertainty.
Keyword Uncertainty
Ambiguity
Risk
Non-expected Utility
Expected Utility Model
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2006 Higher Education Research Data Collection
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 9 times in Thomson Reuters Web of Science Article | Citations
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Created: Wed, 15 Aug 2007, 06:21:23 EST