All Outputs (10)

Tort Liability and Unawareness (2024)
Journal Article
Chakravarty, S., Kelsey, D., & Teitelbaum, J. C. (in press). Tort Liability and Unawareness. International Economic Review, https://doi.org/10.1111/iere.12706

We explore the implications of unawareness for tort law. We study cases where injurers and victims initially are unaware that some acts can yield harmful consequences, or that some acts or harmful consequences are even possible, but later become awar... Read More about Tort Liability and Unawareness.

Reverse Bayesianism and act independence (2022)
Journal Article
Chakravarty, S., Kelsey, D., & Teitelbaum, J. C. (2022). Reverse Bayesianism and act independence. Journal of Economic Theory, 203, Article 105495. https://doi.org/10.1016/j.jet.2022.105495

Karni and Vierø (2013) propose a model of belief revision under growing awareness-reverse Bayesianism-which posits that as a person becomes aware of new acts, consequences , or act-consequence links, she revises her beliefs over an expanded state spa... Read More about Reverse Bayesianism and act independence.

Testing dynamic consistency and consequentialism under ambiguity (2021)
Journal Article
Bleichrodt, H., Eichberger, J., Grant, S., Kelsey, D., & Li, C. (2021). Testing dynamic consistency and consequentialism under ambiguity. European Economic Review, 134, Article 103687

Accounting for ambiguity aversion in dynamic decisions generally implies that either dynamic consistency or consequentialism must be given up. To gain insight into which of these principles better describes people's preferences, we tested them using... Read More about Testing dynamic consistency and consequentialism under ambiguity.

Ambiguity when playing coordination games across cultures (2020)
Journal Article
Laban-­Peryman, J., & Kelsey, D. (2021). Ambiguity when playing coordination games across cultures. Theory and Decision, 90(3-4), 485–505. https://doi.org/10.1007/s11238-020-09765-1

We investigate how people coordinate within their own cultures, compared to interactions with people from different cultures. As players are likely to experience more ambiguity when playing a different culture, we expect players to choose safer strat... Read More about Ambiguity when playing coordination games across cultures.

Contests with Ambiguity (2018)
Journal Article
Kelsey, D., & Melkonyan, T. (2018). Contests with Ambiguity. Oxford Economic Papers, 70(4), 1148-1169. https://doi.org/10.1093/oep/gpy020

The paper examines contests where players perceive ambiguity about their opponents’ strategies and determines how perceptions of ambiguity and attitudes to ambiguity affect equilibrium choice. Behaviour in our contest is affected by pessimistic and o... Read More about Contests with Ambiguity.

Dragon Slaying with Ambiguity: Theory and Experiments (2016)
Journal Article
Le Roux, S., & Kelsey, D. (2017). Dragon Slaying with Ambiguity: Theory and Experiments. Journal of Public Economic Theory, 19(1), 178-197. https://doi.org/10.1111/jpet.12185

This paper studies the impact of ambiguity in the best shot and weakest link models of public good provision. The models are …rst analysed theoretically. Then we conduct experiments to study how ambiguity a¤ects behaviour in these games. We test whet... Read More about Dragon Slaying with Ambiguity: Theory and Experiments.

Ambiguity and Accident Law (2016)
Journal Article
Chakravarty, S., & Kelsey, D. (2017). Ambiguity and Accident Law. Journal of Public Economic Theory, 19(1), 97-120. https://doi.org/10.1111/jpet.12160

Environmental accidents often involve ambiguous risks, i.e. the relevant probabilities are unknown. This paper studies how liability rules are a¤ected by ambiguity. The injurer and the victim choose a level of care, which is observable, and an unobse... Read More about Ambiguity and Accident Law.

Randomization and dynamic consistency (2015)
Journal Article
Eichberger, J., Grant, S., & Kelsey, D. (2016). Randomization and dynamic consistency. Economic Theory, 62(3), 547-566. https://doi.org/10.1007/s00199-015-0913-8

Rai¤a (1961) has suggested that ambiguity aversion will cause a strict preference for randomization. We show that dynamic consistency implies that individuals will be indi¤erent to ex ante randomizations. On the other hand, it is possible for a dynam... Read More about Randomization and dynamic consistency.

Sharing ambiguous risks (2014)
Journal Article
Chakravarty, S., & Kelsey, D. (2015). Sharing ambiguous risks. Journal of Mathematical Economics, 56, 1-8. https://doi.org/10.1016/j.jmateco.2014.11.001

We analyse risk-sharing when individuals perceive ambiguity about future events. The main departure from previous work is that di¤erent individuals perceive ambiguity di¤erently. We show that individuals fail to share risks for extreme events. This m... Read More about Sharing ambiguous risks.

Optimism and pessimism in games (2014)
Journal Article
Eichberger, J., Institut, A. W., Kelsey, D., Balkenborg, D., Colman, A., Ganguli, J., …Wakker, P. (2014). Optimism and pessimism in games. International Economic Review, 55(2), 483-505. https://doi.org/10.1111/iere.12058

This paper considers the impact of ambiguity in strategic situations. It extends the existing literature on games with ambiguity-averse players by allowing for optimistic responses to ambiguity. We use the CEU model of ambiguity with a class of capac... Read More about Optimism and pessimism in games.