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"Objective" Ambiguity and Ex Ante Trade

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Figure

Figure 1 represents the indifference curves of the three agents in example 1: it is easy to see that uncertainty aversion increases the “concavity” of the most preferred set, since the two segments of the indifference curves (the one that lies above and be
Figure 2: vNM economy with same (left) and different (right) probabilities

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