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  1. The Subjective Approach to Ambiguity: A Critical Assessment.Nabil I. Al-Najjar & Jonathan Weinstein - forthcoming - Economics and Philosophy.
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    A Bayesian Model of Knightian Uncertainty.Nabil I. Al-Najjar & Jonathan Weinstein - 2015 - Theory and Decision 78 (1):1-22.
    A long tradition suggests a fundamental distinction between situations of risk, where true objective probabilities are known, and unmeasurable uncertainties where no such probabilities are given. This distinction can be captured in a Bayesian model where uncertainty is represented by the agent’s subjective belief over the parameter governing future income streams. Whether uncertainty reduces to ordinary risk depends on the agent’s ability to smooth consumption. Uncertainty can have a major behavioral and economic impact, including precautionary behavior that may appear overly (...)
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    Choice Under Aggregate Uncertainty.Nabil I. Al-Najjar & Luciano Pomatto - 2016 - Theory and Decision 80 (2):187-209.
    We provide a simple model to measure the impact of aggregate risks. We consider agents whose rankings of lotteries over vectors of outcomes satisfy expected utility and separability. Such rankings are characterized in terms of aggregative utilities that measure sensitivity to aggregate uncertainty in a straightforward way. We consider applications to models of product variety, portfolio choice, and public attitudes towards catastrophic risks. The framework lends support to precautionary measures that penalize policies for exposure to correlation. The model rationalizes a (...)
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