Ambiguity Attitudes in the Loss Domain: Decisions for Self versus Others

Yilong Xu, Xiaogeng Xu () and Steven Tucker
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Xiaogeng Xu: Norwegian School of Economics

Working Papers in Economics from University of Waikato

Abstract: Important financial and medical decisions are often made on behalf of others. We study whether and how people’s ambiguity attitudes differ when deciding for others as compared to deciding for oneself in the loss domain. Our results are consistent with the loss part of the fourfold pattern: ambiguity aversion for low likelihood losses and ambiguity neutrality for moderate likelihood losses. This pattern holds both when deciding for oneself and for others. We find no differences in ambiguity attitudes between self- and other-regarding decision-making.

Keywords: ambiguity attitudes; decision-making for others; losses and uncertainty (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2018-05-14
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://repec.its.waikato.ac.nz/wai/econwp/1807.pdf (application/pdf)

Related works:
Journal Article: Ambiguity attitudes in the loss domain: Decisions for self versus others (2018)
Working Paper: Ambiguity Attitudes in the Loss Domain: Decisions for Self versus Others (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:18/07

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