Unintended hedging in ambiguity experiments

Jörg Oechssler and Alex Roomets

Economics Letters, 2014, vol. 122, issue 2, 243-246

Abstract: We describe an ambiguity hedging problem in Ellsberg experiments, where combinations of individually ambiguous bets eliminate aggregate ambiguity, and which may yield incorrect classifications of ambiguity averse subjects. We propose a new classification consistent with this hedging possibility.

Keywords: Ambiguity aversion; Uncertainty; Experiment; Ellsberg (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:2:p:243-246

DOI: 10.1016/j.econlet.2013.11.029

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