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Measuring Ambiguity Aversion: A Systematic Experimental Approach
This paper provides a systematic analysis of individual attitudes towards ambiguity, based on laboratory experiments. The design of the analysis allows to capture individual behavior across various levels of ambiguity, ...
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 ...
In the experiments, the ambiguous environment is operationalized by an urn. Subjects participating in the experiments are told that the urn contains in total 100 balls, and that each ball is either a white ball or a black ...
FLEX – the Frankfurt Laboratory for Experimental Economic Research is a research center at the Faculty of Economics and Business at Goethe University in Frankfurt.