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9 juin 2022
- 2206.04605
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Economic theory Political economyCiter ce document
Brian Jabarian et al., « A Two-Ball Ellsberg Paradox: An Experiment », arXiv - économie
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Résumé
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 \textit{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.