How Much Ambiguity Aversion? Finding Indifferences between Ellsberg's Risky and Ambiguous Bets

Journal of Risk and Uncertainty 45 (3):215-38 (2012)
Download Edit this record How to cite View on PhilPapers
Abstract
Experimental results on the Ellsberg paradox typically reveal behavior that is commonly interpreted as ambiguity aversion. The experiments reported in the current paper find the objective probabilities for drawing a red ball that make subjects indifferent between various risky and uncertain Ellsberg bets. They allow us to examine the predictive power of alternative principles of choice under uncertainty, including the objective maximin and Hurwicz criteria, the sure-thing principle, and the principle of insufficient reason. Contrary to our expectations, the principle of insufficient reason performed substantially better than rival theories in our experiment, with ambiguity aversion appearing only as a secondary phenomenon.
PhilPapers/Archive ID
VOOHMA
Revision history
First archival date: 2015-11-21
Latest version: 2 (2016-01-28)
View upload history
References found in this work BETA

No references found.

Add more references

Citations of this work BETA
What Is Risk Aversion?Stefánsson, H. Orri & Bradley, Richard
Ambiguity Attitudes, Framing and Consistency.Voorhoeve, Alex; Binmore, Ken G.; Stefansson, Arnaldur & Stewart, Lisa

View all 6 citations / Add more citations

Added to PP index
2012-10-18

Total views
384 ( #6,440 of 38,024 )

Recent downloads (6 months)
51 ( #7,347 of 38,024 )

How can I increase my downloads?

Monthly downloads since first upload
This graph includes both downloads from PhilArchive and clicks to external links.