The 2009 Lawrence R. Klein lecture: Diversified treatment under ambiguity

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34 Scopus citations

Abstract

This article develops a broad theme about treatment under ambiguity through study of a particular decision criterion. The broad theme is that a planner may want to cope with ambiguity by diversification, assigning observationally identical persons to different treatments. Study of the minimax-regret (MR) criterion substantiates the theme. The article significantly extends my earlier analysis of one-period planning with an individualistic treatment and a linear welfare function. I show that MR treatment allocations are fractional in a large class of planning problems with nonlinear welfare functions, interacting treatments, learning, and noncooperative aspects.

Original languageEnglish (US)
Pages (from-to)1013-1041
Number of pages29
JournalInternational Economic Review
Volume50
Issue number4
DOIs
StatePublished - Nov 1 2009

ASJC Scopus subject areas

  • Economics and Econometrics

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