Attitudes towards Uncertainty and Randomization: An Experimental Study

Arbeitspapier

Individuals exhibit a randomization preference if they prefer random mixtures of two bets to each of the involved bets. Such preferences provide the foundation of various models of uncertainty aversion. However, it has to our knowledge not been empirically investigated whether uncertainty-averse decision makers indeed exhibit such preferences. Here, we examine the relationship experimentally. We find that uncertainty aversion is not positively associated with randomization preferences. Moreover, we observe choices that are not consistent with the prevailing theories of uncertainty aversion: a non-negligible number of uncertain-averse subjects seem to dislike randomization.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper Series ; No. 494

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: uncertainty aversion ; randomization preference ; ambiguity ; Choquet expected utility model ; maxmin expected utility model ; experiment ; Entscheidung unter Unsicherheit ; Risikoaversion ; Erwartungsnutzen ; Präferenztheorie ; Test

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dominiak, Adam ; Schnedler, Wendelin
• Ereignis: Veröffentlichung
• (wer): University of Heidelberg, Department of Economics
• (wo): Heidelberg
• (wann): 2010

Weitere Informationen

• DOI: doi:10.11588/heidok.00010203
• Handle: http://hdl.handle.net/10419/127314
• URN: urn:nbn:de:bsz:16-opus-102037
• Letzte Aktualisierung: 15.04.2051, 12:41 MESZ