Objective
Everyday actions involve an amount of uncertainty in the final outcome they will deliver. Following Knight's view, some of this uncertainty is “measurable” (Risk) while some of it is “not measurable” (Ambiguity). In Economics, understanding agents’ behavior under uncertainty is of fundamental importance. For many years, and in both contexts, the standard model of decision making has been the Expected Utility model. Since the famous thought experiments of Allais and Ellsberg, many alternative approaches and departures from Expected Utility were proposed.
Our research agenda has two main goals. First, we aim to show how different approaches and concepts in Decision Theory are connected to each other: namely, incompleteness of preferences, violations of Independence, preference for randomization, the certainty effect, and random choice. Economists have long understood the relevance of these behavioral phenomena, and more and more models are now including them in applications, for example in Macroeconomics and Finance. A deeper understanding of these phenomena and of their relationship would significantly benefit research in several fields of Economics. More practically, it will help in developing comprehensive models in which these biases are linked to each other benefiting more applied research.
Second, decision theorists have studied Ambiguity mostly in static (atemporal) contexts that are insufficient for the analysis of the steady state and dynamic decision problems that characterize applications. Thus, for example, as a result, Macro-Finance mostly keeps relying on traditional decision models that cannot properly cope with model uncertainty. We intend to develop a general theory of recursive intertemporal preference models under uncertainty to address this important issue.
We expect that the novel theoretical findings of our research agenda will push the research frontier and will be relevant for the analysis of the role of uncertainty in several fields.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
- natural sciences biological sciences neurobiology
- social sciences economics and business economics macroeconomics
- natural sciences physical sciences theoretical physics particle physics
- agricultural sciences agriculture, forestry, and fisheries agriculture horticulture fruit growing
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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H2020-EU.1.1. - EXCELLENT SCIENCE - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
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Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
ERC-STG - Starting Grant
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2015-STG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
20136 Milano
Italy
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.