Stake effects on ambiguity attitudes for gains and losses

Ranoua Bouchouicha, Peter Martinsson, Haileselassie Medhin and Ferdinand Vieider ()
Additional contact information
Ranoua Bouchouicha: University of Reading

Theory and Decision, 2017, vol. 83, issue 1, No 2, 19-35

Abstract: Abstract We test the effect of stake size on ambiguity attitudes. Compared to a baseline condition, we find subjects to be more ambiguity seeking for small-probability gains and large-probability losses under high stakes. They are also more ambiguity averse for large-probability gains and small-probability losses. We trace these effects back to stake effects on decisions under risk (known probabilities) and uncertainty (unknown probabilities). For risk, we replicate previous findings. For uncertainty, we find an increase in probabilistic insensitivity under high stakes that is driven by increased uncertainty aversion for large-probability gains and for small-probability losses.

Keywords: Monetary stakes; Ambiguity aversion; Risk attitudes (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://link.springer.com/10.1007/s11238-016-9585-5 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Stake effects on ambiguity attitudes for gains and losses (2017)
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:kap:theord:v:83:y:2017:i:1:d:10.1007_s11238-016-9585-5

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11238/PS2

DOI: 10.1007/s11238-016-9585-5

Access Statistics for this article

Theory and Decision is currently edited by Mohammed Abdellaoui

More articles in Theory and Decision from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().