A Randomness Device to Create the Conditions of Uncertainty

Loïc Berger

Working Papers from HAL

Abstract: The experimental study of decision-making under uncertainty typically builds on Ellsberg's (1961) setting. Yet, as the total number of balls is known in standard Ellsberg's urns, an implicit constraint is put on the specification of the probability models to consider. In practice, this restricts the ability of Ellsberg's urns to characterize situations going beyond those of model ambiguity. In this note, I present a simple and easy-to-implement device that creates the initial conditions of uncertainty, which constitute a critical prerequisite for the study of model misspecification.

Keywords: Ambiguity aversion; experiment; Ellsberg paradox; model uncertainty (search for similar items in EconPapers)
Date: 2023-06-09
New Economics Papers: this item is included in nep-des, nep-exp and nep-upt
Note: View the original document on HAL open archive server: https://hal.science/hal-04071230v2
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-04071230v2/document (application/pdf)

Related works:
Working Paper: A randomness device to create the conditions of uncertainty (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04071230

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().