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The "Ultra-Subjective" Shackle's Approach to the Decision Making Problem Under Ambiguity
No full textQuasi-Option Value Under Ambiguity
No full textRea! investments involving irreversibility and ambiguity embed a positive quasi-option
value under ambiguity (q.o.v.a.), which modifies the evaluation ofan investment decision
involving depletion ofnatural resources by increasing the value of delaying. Q.o.v.a. depends
on the specific decision-maker attitude towards ambiguity, expressed by a capacity on the
state space. An empirica! measure of q.o. v .a. is pointed out. Exploiting the properties of a
capacity and its conjugate, the relationship has been established between the upper and lower
Choquet integrai with respect to a subadditive capacity and the bid and ask price ofthe
underlying asset (output) ofthe investment decision. The empirica! measure of q.o.v.a. is
defined as the upper bound ofthe opportunity value. As an example, q.o.v.a. is applied to
evaluate an off-shore petroleum lease under ambiguity.
Citation
Cost efficiency of Italian investment firms
No full textThis paper estimates cost eficiency of italian investment firms during the period 1998-2992. following the stochasticfrontier function approach. Results indicate a significative inefficiency
Ambiguity in citizens-politicians interactions
No full textIn the paper a game between private and public individuals is set in order to study
under which conditions the former would like to limit ex-ante the choices of the latter.
Ambiguity, as distinguished from risk, is explicitly introduced by means of capacities and
Choquet Expected Utility. It is shown that constitutional constraints are necessary to
prevent private individuals from being exploited by public individuals whenever citizens
feel a too high level of ambiguity
Analisi delle Gare di Concessione per l'aggiudicazione del Servizio di Distribuzione del Gas Naturale
No full text
Choices Under Risk and Ambiguity with Familiar and Unfamiliar Outcomes
No full textThis paper considers a decision-making process under ambiguity in which the decision-maker is supposed to split outcomes between familiar and unfamiliar ones. She is assumed to behave differently with respect to unfamiliar gains, unfamiliar losses and customary (familiar) outcomes. In particular, she is supposed to be pessimistic on gains, optimistic on losses and ambiguity neutral on the familiar outcomes. A generalization of the usual Choquet Integral is formalized when the decision maker holds capacities and probabilities. A characterization of the decision-maker’s behavior is provided for a specific subset of capacities, in which it is shown that the decision-maker underestimates the unfamiliar outcomes while is linear in probabilities on customary ones
A Non-Expected Glance at Markets: Financial Models and Knightian Uncertainty
No full textThe article shows financial markets under ambiguity and inspires intuition regarding cognitive processes that underlie trade choices
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