IDEAS home Printed from https://ideas.repec.org/a/bla/jrinsu/v87y2020i1p195-212.html
   My bibliography  Save this article

Comparative Ambiguity Aversion in Intertemporal Decisions

Author

Listed:
  • Jianli Wang
  • Jingyuan Li

Abstract

This article examines the effects of ambiguity aversion on intertemporal decisions when there is ambiguity about a future state. Compared to the existing literature, we allow for a three‐way separation between intertemporal substitution, risk aversion, and ambiguity aversion. Holding risk preferences, beliefs, and time preferences fixed, we explore how a change in ambiguity aversion increases the strength of the current willingness to pay. We apply our results to saving, self‐protection, and self‐insurance problems.

Suggested Citation

  • Jianli Wang & Jingyuan Li, 2020. "Comparative Ambiguity Aversion in Intertemporal Decisions," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(1), pages 195-212, March.
    • Handle: RePEc:bla:jrinsu:v:87:y:2020:i:1:p:195-212
    DOI: 10.1111/jori.12253
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jori.12253
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jori.12253?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wong, Kit Pong, 2024. "Optimal nonlinear pricing by a monopoly with smooth ambiguity preferences," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 594-604.
    2. Suen, Richard M. H., 2022. "Precautionary Saving Behaviour under Ambiguity," MPRA Paper 114382, University Library of Munich, Germany.
    3. Farooq, Abdul Samad & Zhang, Peng & Gao, Yongfeng & Gulfam, Raza, 2021. "Emerging radiative materials and prospective applications of radiative sky cooling - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jrinsu:v:87:y:2020:i:1:p:195-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/ariaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.