Additive and Multiplicative Uncertainty Revisited: What Explains the Contrasting Biases? |
| |
Authors: | Ciaran Driver Tommaso M Valletti |
| |
Institution: | (1) Imperial College Business School, University of London, UK (e-mail: c.driver@ic.ac.uk), GB;(2) Imperial College Management School, University of London, UK and CEPR, London, UK (e-mail: t.valletti@ic.ac.uk), GB |
| |
Abstract: | above the certainty level while for additive uncertainty the price should be lower than the certainty level. This note gives an intuitive explanation for the result after first presenting a parsimonious review
of the two models. We also discuss which, if either, of the two models is more realistic.
Received December 14, 2001; revised version received July 16, 2002
Published online: April 30, 2003
We thank referees for helpful comments. Ciaran Driver would like to acknowledge the research facilities from ANU, Canberra
for their help in writing this paper. |
| |
Keywords: | : investment uncertainty price |
本文献已被 SpringerLink 等数据库收录! |
|