Learning-by-doing in an ambiguous environment

Jim Engle-Warnick and Sonia Laszlo
Additional contact information
Jim Engle-Warnick: McGill University

Journal of Risk and Uncertainty, 2017, vol. 55, issue 1, No 4, 94 pages

Abstract: Abstract How well do revealed ambiguity preferences predict how people choose to seek new information about uncertain events? In an economics experiment, we apply a new instrument to measure ambiguity preferences, and in a later session observe to what extent the measure predicts the choice to receive costly information in a learning-by-doing game. Ambiguity averse subjects are more willing to pay to receive information, while risk averse subjects are not. Holding ambiguity preferences constant, risk averse subjects tend to perform worse than risk loving subjects. The returns to experimentation, especially for ambiguity averse subjects, suggest a not-well studied but important role that ambiguity preferences play in decision-making under uncertainty.

Keywords: Learning-by-doing; Technology choice; Risk preferences; Risk measurement instruments; Ambiguity Aversion; Experimental economics (search for similar items in EconPapers)
JEL-codes: C91 D80 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://link.springer.com/10.1007/s11166-017-9264-0 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Learning-by-Doing in an Ambiguous Environment (2016)
Working Paper: Learning-by-Doing in an Ambiguous Environment (2006)
Working Paper: LEARNING BY DOING IN AN AMBIGUOUS ENVIRONMENT (2006)
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:jrisku:v:55:y:2017:i:1:d:10.1007_s11166-017-9264-0

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11166/PS2

DOI: 10.1007/s11166-017-9264-0

Access Statistics for this article

Journal of Risk and Uncertainty is currently edited by W. Kip Viscusi

More articles in Journal of Risk and Uncertainty from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().