Prudence, Demand Uncertainty, Background Risk, and the Law of Supply: A Nonexpected Utility Approach to the Firm*

093057 (E12) Prudence demand uncertainty

093057 (E12) Prudence demand uncertainty background risk and the law of supply: A nonexpected utility approach to the firm : Demers F., Demers M., The Geneva Papers on Risk and Insurance Theory, Vol. 22, No 1, 1997, pp. 21–42

📂 Article 📅 1997 🏛 Elsevier Science 🌐 English ⚖ 92 KB

## 269 relations over uncertain prospects that (a) are dynamically consistent in the Machina sense and, moreover, for which the updated preferences are also members of this family and (b) can simultaneously accommodate Ellsberg-and Allais-type paradoxes. Replacing the "mixture independence" axiom