Savage vs. Anscombe-Aumann: An experimental investigation of ambiguity frameworks

Arbeitspapier

The Savage and the Anscombe-Aumann frameworks are the two most popular approaches used when modeling ambiguity. The former is more flexible, but the latter is often preferred for its simplicity. We conduct an experiment where subjects place bets on the joint outcome of an ambiguous urn and a fair coin. We document that more than a third of our subjects make choices that are incompatible with Anscombe-Aumann for any preferences, while the Savage framework is flexible enough to accountfor subjects' behaviors.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series ; No. 672

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Noncooperative Games ; Conflict; Conflict Resolution; Alliances; Revolutions
• Subject: Ellsberg paradox ; ambiguity ; experiment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Oechssler, Jörg ; Roomets, Alex
• Event: Veröffentlichung
• (who): University of Heidelberg, Department of Economics
• (where): Heidelberg
• (when): 2019

Further information

• DOI: doi:10.11588/heidok.00027276
• Handle: http://hdl.handle.net/10419/207648
• URN: urn:nbn:de:bsz:16-heidok-272764
• Last update: 10.03.2025, 11:41 AM CET