hero working papers

Absolute and Relative Ambiguity Aversion: A Preferential Approach

Number: 578
Year: 2016
Author(s): S. Cerreia-Vioglio, F. Maccheroni, and M. Marinacci
We study from a preferential viewpoint absolute and relative attitudes toward ambiguity determined by wealth effects. We provide different characterizations of these attitudes for a large class of preferences: monotone and continuous preferences which satisfy risk independence. We specify our results for different subclasses of preferences.