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Higher-Order Ambiguity Attitudes

q-fin.RM · 2025-01-22 · conditional · novelty 6.0

A new double-applied behavioral preference defines ambiguity prudence, and prudence is equivalent to positive third derivatives of the capacity in CEU, the dual conjugate in divergence preferences, and the attitude function in smooth ambiguity.

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  • Higher-Order Ambiguity Attitudes q-fin.RM · 2025-01-22 · conditional · none · ref 7

    A new double-applied behavioral preference defines ambiguity prudence, and prudence is equivalent to positive third derivatives of the capacity in CEU, the dual conjugate in divergence preferences, and the attitude function in smooth ambiguity.