A test of (weak) certainty independence

Christian König-Kersting, Christopher Kops and Stefan Trautmann

Journal of Economic Theory, 2023, vol. 209, issue C

Abstract: We provide a test of the axioms of certainty and weak certainty independence in models of decision-making under subjective uncertainty. We show that it is through these two weakenings of the classic independence axiom that prominent ambiguity models retain properties that stand in conflict with the ambiguity-sensitive behavior that is revealed in our experiment. Our findings suggest that this conflict may be of a more fundamental nature than what most of these models can accommodate. Our results call for the use of ambiguity models that can accommodate an ambiguity attitude which depends on the chances of winning.

Keywords: Ellsberg paradox; Ellsberg urn; Machina paradox; Certainty independence; Weak certainty independence (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:209:y:2023:i:c:s0022053123000194

DOI: 10.1016/j.jet.2023.105623

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