Ambiguous Correlation

Larry Epstein and Yoram Halevy

Microeconomics.ca working papers from Vancouver School of Economics

Abstract: Many decisions are made in environments where outcomes are determined by the realization of multiple random events. A decision maker may be uncertain how these events are related. We identify and experimentally substantiate behavior that intuitively reflects a lack of confidence in their joint distribution. Our findings suggest a dimension of ambiguity which is different from that in the classical distinction between risk and "Knightian uncertainty."

Keywords: ambiguity; uncertainty; correlation; Ellsberg (search for similar items in EconPapers)
JEL-codes: C90 C91 D80 D81 D83 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2017-02-15, Revised 2018-01-09
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Ambiguous Correlation (2019)
Working Paper: Ambiguous Correlation (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ubc:pmicro:yoram_halevy-2017-2

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