Marcello Basili
DEPS, University of Siena
Abstract
This paper advances an intuitive way to represent Keynes’s notion of long-term expectation. The epsilon-contamination approach is introduced and a rational and coherent decision rule is derived. The result is evidence that Ellsberg and Keynes share the notion of uncertainty and adopt the same class of decision rules
Keywords
Keynes, Ellsberg, expectation, consensus distribution, uncertainty, epsilon-contamination
Jel Classification
B16, D81
