This paper studies a Lucas (1978) fruit-tree economy under the assumption that the agents are Choquet expected utility (CEU) rather than standard expected utility decision makers. More specifically, the agents’ non-additive ...

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The existing literature on convergence in nonadditive measure has exclusively focused on the construction of weak base topologies whereby different authors have used different notions of balls in their respective constructions. ...

Representative agent models pin down equilibrium asset prices of an underlying heterogeneous agents economy through the utility maximization problem of a representative agent evaluated at aggregate endowment levels. This ...

This note combines a dynamic industrial organization model, in which an industry is subject to exogenous processes of market-size and collusion structure, with a consumption-based asset pricing model for the shares in the ...

This article investigates the roles of psychological biases for deviations between subjective survival beliefs (SSBs) and objective survival probabilities. We model these deviations through age-dependent inverse ...

This paper explains the empirical phenomenon of persistent "fifty-fifty"probability judgments through a model of Bayesian updating under ambiguity. To this purpose I characterize an announced probability judgment as a ...

This paper experimentally tests whether violations of Savage s (1954) sure- thing principle (STP) decrease through statistical learning. Our subjects repeat- edly had to bet on the drawings from an urn with an unknown ...

The South African private health care market combines a highly concentrated demand side with expensive medical services. This combination suggests that medical insurance schemes are not using their full market power. To ...

Existing no trade results are based on the common prior assumption (CPA). This paper identifies a strictly weaker condition than the CPA under which speculative trade is impossible in a rational expectations equilibrium ...