Asset Details
Do you wish to reserve the book?
Eliciting ambiguity aversion in unknown and in compound lotteries: a smooth ambiguity model experimental study
Hey, we have placed the reservation for you!
By the way, why not check out events that you can attend while you pick your title.
Oops! Something went wrong.
Looks like we were not able to place the reservation. Kindly try again later.
Are you sure you want to remove the book from the shelf?
Eliciting ambiguity aversion in unknown and in compound lotteries: a smooth ambiguity model experimental study
Do you wish to request the book?
Eliciting ambiguity aversion in unknown and in compound lotteries: a smooth ambiguity model experimental study
Please be aware that the book you have requested cannot be checked out. If you would like to checkout this book, you can reserve another copy
We have requested the book for you!
Your request is successful and it will be processed during the Library working hours. Please check the status of your request in My Requests.
Oops! Something went wrong.
Looks like we were not able to place your request. Kindly try again later.
Journal Article
Eliciting ambiguity aversion in unknown and in compound lotteries: a smooth ambiguity model experimental study
2014
Overview
Coherent-ambiguity aversion is defined within the (Klibanoff et al., Econometrica 73:1849–1892,
2005
) smooth-ambiguity model (henceforth
KMM
) as the combination of choice-ambiguity and value-ambiguity aversion. Five ambiguous decision tasks are analyzed theoretically, where an individual faces two-stage lotteries with binomial, uniform, or unknown second-order probabilities. Theoretical predictions are then tested through a 10-task experiment. In (unambiguous) tasks 1–5, risk aversion is elicited through both a portfolio choice method and a
BDM
mechanism. In (ambiguous) tasks 6–10, choice-ambiguity aversion is elicited through the portfolio choice method, while value-ambiguity aversion comes about through the
BDM
mechanism. The behavior of over 75 % of classified subjects is in line with the
KMM
model in all tasks 6–10, independent of their degree of risk aversion. Furthermore, the percentage of coherent-ambiguity-averse subjects is lower in the binomial than in the uniform and in the unknown treatments, with only the latter difference being significant. The most part of coherent-ambiguity-loving subjects show a high risk aversion.
Publisher
Springer US,Springer,Springer Nature B.V,Springer Verlag
Subject
/ Analysis
/ Behavior
/ Behavioral/Experimental Economics
/ Decision
/ Decision theory. Utility theory
/ Design
/ Economic Theory/Quantitative Economics/Mathematical Methods
/ Exact sciences and technology
/ Finance
/ Humanities and Social Sciences
/ Operational research and scientific management
/ Operational research. Management science
/ Operations Research/Decision Theory
/ Risk
/ Risk theory. Actuarial science
/ Studies
/ Tasks
