Brian Jabarian, Simon Lazarus
arXiv 9 Jun 2022 · Theoretical Economics · 2 citations (OpenAlex)
arXiv:2206.04605 · PDF · DOI · OpenAlex · Extracted main text
We conduct an incentivized experiment on a nationally representative US sample \\ (N=708) to test whether people prefer to avoid ambiguity even when it means choosing dominated options. In contrast to the literature, we find that 55% of subjects prefer a risky act to an ambiguous act that always provides a larger probability of winning. Our experimental design shows that such a preference is not mainly due to a lack of understanding. We conclude that subjects avoid ambiguity per se rather than avoiding ambiguity because it may yield a worse outcome. Such behavior cannot be reconciled with existing models of ambiguity aversion in a straightforward manner.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Gillen, Ben, Erik Snowberg, and Leeat Yariv (2019) Experimenting with measurement error: Techniques with applications to the caltech cohort study | 0.928 | 4 | 3 | 100% |
| 2 | Halevy, Yoram (2007) Ellsberg revisited: An experimental study | 0.811 | 4 | 2 | 100% |
| 3 | Gilboa, Itzhak and David Schmeidler (1989) Maxmin expected utility with non-unique prior | 0.737 | 3 | 2 | 100% |
| 4 | Machina, Mark J (2009) Risk, ambiguity, and the rank-dependence axioms | 0.585 | 3 | 1 | 100% |
| 5 | Anscombe, F. J. and R. J. Aumann (1963) A definition of subjective probability | 0.511 | 2 | 1 | 100% |
| 6 | Ellsberg, Daniel (1961) Risk, ambiguity, and the savage axioms | 0.511 | 2 | 1 | 100% |
| 7 | Klibanoff, Peter, Massimo Marinacci, and Sujoy Mukerji (2005) A smooth model of decision making under ambiguity | 0.511 | 2 | 1 | 100% |
| 8 | Savage, Leonard J (1954) The foundations of statistics | 0.511 | 2 | 1 | 100% |
| 9 | Blavatskyy, Pavlo R (2013) Two examples of ambiguity aversion | 0.405 | 1 | 1 | 100% |
| 10 | Ghirardato, Paolo, Fabio Maccheroni, and Massimo Marinacci (2004) Differentiating ambiguity and ambiguity attitude | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 28 scored citations.