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Attanasi, Giuseppe Marco
and Montesano, Aldo
(2010)
The Price for Information about Probabilities and its Relation with Capacities.
TSE Working Paper, n. 10-193
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Abstract
In this paper ambiguity aversion is measured through the maximum price the decision maker is willing to pay in order to know the probability of an event. Two comparative problems are examined in which the decision maker faces an act: in one case buying
information implies playing a lottery, while in the other case buying information gives also the option to avoid playing the lottery. In both decision settings, relying on Choquet expected utility model, we study how the decision maker’s risk and ambiguity attitudes affect the reservation price for information. These effects are analyzed for different levels of ambiguity of the act.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | September 2010 |
| Uncontrolled Keywords: | Ambiguity aversion, Choquet expected utility, Information about probabilities |
| JEL Classification: | C91 - Laboratory, Individual Behavior D81 - Criteria for Decision-Making under Risk and Uncertainty D83 - Search; Learning; Information and Knowledge; Communication; Belief |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 18 Jan 2012 06:02 |
| Last Modified: | 02 Apr 2021 15:36 |
| OAI Identifier: | oai:tse-fr.eu:23343 |
| URI: | https://publications.ut-capitole.fr/id/eprint/3458 |
