What is difference between risk uncertainty and ambiguity

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Reference no: EM13858690

In an essay format please answer the following two questions:

1. How does the analysis of risk aversion change when one allows for alternative models of decision-making then expected utility?

2. How does subjective expected utility theory differ from expected utility theory? How might one elicit a subjective probability from a decision-maker? What is the difference between risk, uncertainty and ambiguity?

Reference no: EM13858690

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