Now showing items 1-2 of 2
Belief Formation and Belief Updating under Ambiguity: Evidence from Experiments
Decisions under ambiguity depend on both the belief regarding possible scenarios and the attitude towards ambiguity. This paper exclusively focuses on beliefs, measured independent from attitudes. We use laboratory experiments ...
Separating the Effects of Beliefs and Attitudes on Pricing under Ambiguity
The pricing of an ambiguous asset, whose cash flow stream is uncertain, may be affected by three factors: the belief regarding the realization likelihood of cash flows, the subjective attitude towards risk, and the attitude ...