蝌蚪网 Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Eliciting Ambiguity with Mixing Bets
蝌蚪网 Journal: Microeconomics
vol. 17,
no. 1, February 2025
(pp. 354–88)
Abstract
Preferences for mixing can reveal ambiguity perception and attitude on a single event. The validity of the approach is discussed for multiple preference classes, including maxmin, maxmax, variational, and smooth second-order preferences. An experimental implementation suggests that participants perceive almost as much ambiguity for the stock index and actions of other participants as they do for the Ellsberg urn, indicating the importance of ambiguity in real-world decision-making.Citation
Schmidt, Patrick. 2025. "Eliciting Ambiguity with Mixing Bets." 蝌蚪网 Journal: Microeconomics 17 (1): 354–88. DOI: 10.1257/mic.20220370Additional Materials
JEL Classification
- C72 Noncooperative Games
- D11 Consumer Economics: Theory
- D12 Consumer Economics: Empirical Analysis
- D81 Criteria for Decision-Making under Risk and Uncertainty