It is shown that interim dynamically consistent trade may be supported among agents who have resolute (non-consequential) choice preferences.  2003 Elsevier Inc. All rights reserved. JEL classification: D81; D82; D84

This paper is concerned with learning decision-makers’ preferences using data on observed choices from a finite set of risky alternatives. We propose discrete choice model unobserved heterogeneity in consideration sets and standard risk aversion. obtain sufficient conditions for the model’s semi-nonparametric point identification, including cases where depends some exogenous variables. Our meth...

This paper investigates how variations in macroeconomic uncertainty distort commercial banks’ allocation of loanable funds by analyzing the dispersion of banks’ total loan-to-asset ratios over a quartercentury period. JEL: C22, C23, D81, E51.

A belief operator derived from preferences is presented. It generalizes ‘belief with probability 1’ to incomplete preferences and satisfies minimal requirements for belief operators under weak conditions. JEL Classification no: D81.

We study the updating of beliefs under ambiguity for invariant biseparable preferences. In particular, we show that a natural form of dynamic consistency characterizes the Bayesian updating of these beliefs. JEL classification: D81

Commentators often lament forecasters’ inability to provide precise predictions of the long-run behavior complex economic and physical systems. Yet their concerns conflate presence substantial uncertainty with need for predictability; short-run can partially substitute if decision-makers adjust activities over time. So what is relative importance short- predictability? We study this question in...

Utilitarianism plays a central role in economics, but there is gap between theory, where utilitarianism dominant, and applications, monetary criteria are often used. For key difficulty to define how utilities should be measured compared. Drawing on Harsanyi’s (1955) approach, we introduce new normalization of ensuring that: (i) transfer from rich population poor welfare enhancing, (ii) populati...