Are foundations of models of ambiguity-sensitive preferences too flawed to be usefully applied to economic models? Al-Najjar and Weinstein (2009) say such is indeed the case. In this paper, first, we point out that many of the key arguments by Al-Najjar and Weinstein do not apply to quite a few of the ambiguity preference models of more recent vintage, and therefore to that extent do not undermine the foundational aspects or applicability of ambiguity models in general. Second, we argue the (...) focus in that paper on Ellsberg examples is an overly narrow concern; the Ellsberg examples have their uses but they are not the best context to understand why reasonable real-world agents may find acting in an ambiguity-sensitive manner normatively or prescriptively appealing. Finally, normative considerations aside, we submit that Al-Najjar and Weinstein are unduly dismissive of the power of such preferences to provide illuminating positive analyses of economic phenomena. (shrink)

We use the multiple price list method and a recursive expected utility theory of smooth ambiguity to separate out attitude towards risk from that towards ambiguity. Based on this separation, we investigate if there are differences in agent behaviour under uncertainty over gain amounts vis-a-vis uncertainty over loss amounts. On an aggregate level, we find that (i) subjects are risk averse over gains and risk seeking over losses, displaying a “reflection effect” and (ii) they are ambiguity neutral over gains and (...) are mildly ambiguity seeking over losses. Further analysis shows that on an individual level, and with respect to both risky and ambiguous prospects, there is limited incidence of a reflection effect where subjects are risk/ambiguity averse (seeking) in gains and seeking (averse) in losses, though this incidence is higher for ambiguous prospects. A very high proportion of such cases of reflection exhibit risk (ambiguity) aversion in gains and risk (ambiguity) seeking in losses, with the reverse effect being significantly present in the case of risk but almost absent in case of ambiguity. Our results suggest that reflection across gains and losses is not a stable individual characteristic, but depends upon whether the form of uncertainty is precise or ambiguous, since we rarely find an individual who exhibits reflection in both risky and ambiguous prospects. We also find that correlations between attitudes towards risk and ambiguity were domain dependent. (shrink)

We argue, in light of Collapse Model interpretation of quantum theory, that the fundamental division between the quantum and classical behaviors might be analogous to the division of thermodynamic phases. A specific relationship between the collapse parameter $$(\lambda )$$ and the collapse length scale ( $$r_C$$ ) plays the role of the coexistence curve in usual thermodynamic phase diagrams. We further claim that our functional relationship between $$\lambda$$ and $$r_C$$ is strongly supported by the existing International Germanium Experiment (IGEX) collaboration (...) data. This result is preceded by a brief discussion of quantum measurement theory and the Ghirardi–Rimini–Weber (GRW) model applied to the free wavepacket dynamics. (shrink)

The significance of and the role played by Knowledge Management (KM) is ever increasing in today's business and organizational decision-making environment. This paper attempts to underline the importance of organizing knowledge not for its own sake, but for its efficient use in organizational decision making. The tremendous explosion of knowledge resources, both electronic and conventional, within the last few decades calls for an understanding of how knowledge is organized for management of data and information. This is so for the reason (...) that they can be proficiently employed to create value and utility. This also calls for a search for 'relevance' in KM with regard to its situated nature in different contexts within which knowledge is situated, and that which nevertheless indirectly refers to its ontological scaffolding. We have devised two simple mathematical models of reference with regard to the design of the systems mostly intended for organizing knowledge in knowledge organizations for its most efficient utilization. The model specifies several unique scenarios aided by discovery of arguments related to its ontological framework within which knowledge is situated. Several contexts were drawn to draw inferences from the research study. The results bear relevance to knowledge managers who make important decisions for realization of organizational goals and objectives. (shrink)

We report an experiment where each subject’s ambiguity sensitivity is measured by an ambiguity premium, a concept analogous to and comparable with a risk premium. In our design, some tasks feature known objective risks and others uncertainty about which subjects have imperfect, heterogeneous, information. We show how the smooth ambiguity model can be used to calculate ambiguity premia. A distinctive feature of our approach is estimation of each subject’s subjective beliefs about the uncertainty in ambiguous tasks. We find considerable heterogeneity (...) among subjects in beliefs and ambiguity premia; and that, on average, ambiguity sensitivity is about as strong as risk sensitivity. (shrink)

Public Libraries (PLs) continue to contribute a great deal to user education in local communities. This paper analyzes the importance of PLs in driving community literacy through promotion of user education for the progressive improvement of the society. The paper stresses the relevance and value of PLs by reassessing the benefits they accrue by analyzing the impact of PLs on community and social education. As indigenous knowledge repositories, PLs play a significant role as community information service providers by driving community (...) literacy. The goal of this paper is to analyze the role played by PLs in driving community education and promoting information literacy in the society. PLs, being storehouses of knowledge, support user education by undertaking active part in community information services. The model helps in explaining and analyzing the efficiency of information search and retrieval process in PLs and how it affects user education and community literacy. The paper also discusses the relevance and value of PLs in this age of digital technology. The findings reinforce the claim that PLs are relevant even in this digital age, and they indeed support user education for the progressive improvement of the society. (shrink)