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• W2899078833 abstract "This paper investigates the economics of uncertainty using a state‐contingent approach with a focus on the role of non‐convexity. Under efficiency, the slopes of a separating hypersurface measures state‐contingent prices. As argued by Yaari, normalized state‐contingent prices provide a measure of subjective probabilities. But efficiency under non‐convexity can require non‐linear pricing. The analysis identifies non‐convexity conditions under which probability assessments are not appropriate. Implications for economic and welfare analysis under uncertainty are discussed." @default.
• W2899078833 created "2018-11-09" @default.
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• W2899078833 date "2018-11-02" @default.
• W2899078833 modified "2023-09-27" @default.
• W2899078833 title "Efficiency under Uncertainty and Non‐convexity: Evaluating the Role of Probabilities" @default.
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• W2899078833 doi "https://doi.org/10.1111/ecca.12293" @default.
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