An Ellsberg paradox for ambiguity aversion

Christoph Kuzmics, Brian W. Rogers () and Xiannong Zhang ()
Additional contact information
Brian W. Rogers: Washington University in St. Louis, U.S.A.
Xiannong Zhang: Washington University in St. Louis, U.S.A.

No 2022-05, Graz Economics Papers from University of Graz, Department of Economics

Abstract: The 1961 Ellsberg paradox is typically seen as an empirical challenge to the subjective expected utility framework. Experiments based on Ellsberg's design have spawned a variety of new approaches, culminating in a new paradigm represented by, now classical, models of ambiguity aversion. We design and implement a decision-theoretic lab experiment that is extremely close to the original Ellsberg design and in which, empirically, subjects make choices very similar to those in the Ellsberg experiments. In our environment, however, these choices cannot be rationalized by any of the classical models of ambiguity aversion.

Keywords: Knightian uncertainty; subjective expected utility; ambiguity aversion; lab experiment. (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2022-12
New Economics Papers: this item is included in nep-exp, nep-hpe and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: An Ellsberg paradox for ambiguity aversion (2023)
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