The 2009 Lawrence R. Klein Lecture: Diversified Treatment Under Ambiguity

29 Pages Posted: 28 Oct 2009

See all articles by Charles F. Manski

Charles F. Manski

Northwestern University - Department of Economics; National Bureau of Economic Research (NBER)

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.

Suggested Citation

Manski, Charles F., The 2009 Lawrence R. Klein Lecture: Diversified Treatment Under Ambiguity. International Economic Review, Vol. 50, No. 4, pp. 1013-1041, November 2009, Available at SSRN: https://ssrn.com/abstract=1495266 or http://dx.doi.org/10.1111/j.1468-2354.2009.00558.x

Charles F. Manski (Contact Author)

Northwestern University - Department of Economics ( email )

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