Stake effects on ambiguity attitudes for gains and losses
Haileselassie Medhin () and
Ferdinand M. Vieider ()
Additional contact information
Ranoua Bouchouicha: University of Reading
Ferdinand M. Vieider: University of Reading
Theory and Decision, 2017, vol. 83, issue 1, 19-35
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)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11238-016-9585-5 Abstract (text/html)
Access to full text is restricted to subscribers.
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)
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
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 ().