Non-expected utility risk premiums: The cases of probability ambiguity and outcome uncertainty

  title={Non-expected utility risk premiums: The cases of probability ambiguity and outcome uncertainty},
  author={Uzi Segal and Avia Spivak},
  journal={Journal of Risk and Uncertainty},
This paper discusses two problems. (a) What happens to the conditional risk premium that a decision maker is willing to pay out of the middle prize in a lottery to avoid uncertainty concerning the middle prize outcome, when the probabilities of other prizes change? (b) What happens to the increase that a decision maker is willing to accept in the probability of an unpleasant outcome in order to avoid ambiguity concerning this probability, when this probability increases? We discuss both… Expand

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