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  1. An experimental study on the effect of ambiguity in a coordination game.David Kelsey & Sara le Roux - 2015 - Theory and Decision 79 (4):667-688.
    We report an experimental test of the influence of ambiguity on behaviour in a coordination game. We study the behaviour of subjects in the presence of ambiguity and attempt to determine whether they prefer to choose an ambiguity-safe option. We find that this strategy, which is not played in either Nash equilibrium or iterated dominance equilibrium, is indeed chosen quite frequently. This provides evidence that ambiguity-aversion influences behaviour in games. While the behaviour of the Row Player is consistent with randomising (...)
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  • Recursive expected utility and the separation of attitudes towards risk and ambiguity: an experimental study. [REVIEW]Sujoy Chakravarty & Jaideep Roy - 2008 - Theory and Decision 66 (3):199-228.
    We use the multiple price list method and a recursive expected utility theory of smooth ambiguity to separate out attitude towards risk from that towards ambiguity. Based on this separation, we investigate if there are differences in agent behaviour under uncertainty over gain amounts vis-a-vis uncertainty over loss amounts. On an aggregate level, we find that (i) subjects are risk averse over gains and risk seeking over losses, displaying a “reflection effect” and (ii) they are ambiguity neutral over gains and (...)
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