Does exposure to unawareness affect risk preferences? A preliminary result
Wenjun Ma () and
Burkhard Schipper ()
Additional contact information
Wenjun Ma: Shenzhen University
Theory and Decision, 2017, vol. 83, issue 2, 245-257
Abstract One fundamental assumption often made in the literature on unawareness is that risk preferences are invariant to changes of awareness. We study how exposure to unawareness affects choices under risk. Participants in our experiment choose repeatedly between varying sure outcomes and a lottery in three phases. All treatments are exactly identical in phase 1 and phase 3, but differ in phase 2. There are five different treatments pertaining to the lottery faced in phase 2: The control treatment (i.e., a standard lottery), the treatment with awareness of unawareness of lottery outcomes but known number of outcomes, the treatment with awareness of unawareness of outcomes but with unknown number of outcomes, the treatment with unawareness of unawareness of some outcomes, and the treatment with an ambiguous lottery. We study both whether behavior differs in phase 3 across treatments (between subjects effect) and whether differences of subjects’ behavior between phases 1 and phase 3 differ across treatments (within subject effects). We observe no significant treatment effects.
Keywords: Unawareness; Awareness of unawareness; Risk aversion; Experiments (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11238-017-9594-z Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: Does Exposure to Unawareness Affect Risk Preferences? A Preliminary Result (2017)
Working Paper: Does Exposure to Unawareness Affect Risk Preferences? A Preliminary Result (2016)
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:2:d:10.1007_s11238-017-9594-z
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 ().