Measuring higher order ambiguity preferences

We report the results from an experiment designed to measure attitudes towards ambiguity beyond ambiguity aversion. In particular, we implement recently-proposed model-free preference conditions of ambiguity prudence and ambiguity temperance. Ambiguity prudence has been shown to play an important ro...

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Detalles Bibliográficos
Autores principales: Baillon, Aurélien, Schlesinger, Harris, van de Kuilen, Gijs
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2017
Materias:
Original Paper
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5913386/
https://www.ncbi.nlm.nih.gov/pubmed/29720888
http://dx.doi.org/10.1007/s10683-017-9542-3
Descripción
Sumario:We report the results from an experiment designed to measure attitudes towards ambiguity beyond ambiguity aversion. In particular, we implement recently-proposed model-free preference conditions of ambiguity prudence and ambiguity temperance. Ambiguity prudence has been shown to play an important role in precautionary behavior and the mere presence of ambiguity averse agents in markets. We observe that the majority of individuals’ decisions are consistent with ambiguity aversion, ambiguity prudence and ambiguity temperance. This finding confirms the prediction of many popular (specifications of) ambiguity models and has important implications for models of prevention behavior. ELECTRONIC SUPPLEMENTARY MATERIAL: The online version of this article (doi:10.1007/s10683-017-9542-3) contains supplementary material, which is available to authorized users.

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