Downloads
wp1305.pdf
PDF | 444.11 KB
We derive necessary and sufficient conditions for data sets composed of state-contingent prices and consumption to be consistent with two prominent models of decision making under uncertainty: variational preferences and smooth ambiguity. The revealed preference conditions for subjective expected utility, maxmin expected utility, and multiplier preferences are characterised as special cases. We implement our tests on data from a portfolio choice experiment.
Authors
Research Associate University of Leicester
Professor of Economics at the University of Leicester. His research interests are in applied microeconomics and microeconomic theory.
Ralph Bayer
Subir Bose
Ludovic Renou
Working Paper details
- DOI
- 10.1920/wp.ifs.2013.1305
- Publisher
- Institute for Fiscal Studies
Suggested citation
Bayer, R et al. (2013). Ambiguity revealed. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/ambiguity-revealed (accessed: 4 May 2024).
More from IFS
Understand this issue
Where next for the state pension?
13 December 2023
Social mobility and wealth
12 December 2023
Autumn Statement 2023: IFS analysis
23 November 2023
Policy analysis
Recent trends in and the outlook for health-related benefits
19 April 2024
Progression of nurses within the NHS
12 April 2024
Regional variation in earnings and the retention of NHS staff in Agenda for Change bands 1 to 4
10 April 2024
Academic research
A senior doctor like me: Gender match and occupational choice
24 April 2024
Police infrastructure, police performance, and crime: Evidence from austerity cuts
24 April 2024
Imagine your life at 25: Gender conformity and later-life outcomes
24 April 2024