Ellsberg paradox: ambiguity and complexity aversions compared

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F16%3A00459196" target="_blank" >RIV/67985998:_____/16:00459196 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1007/s11166-016-9232-0" target="_blank" >http://dx.doi.org/10.1007/s11166-016-9232-0</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/s11166-016-9232-0" target="_blank" >10.1007/s11166-016-9232-0</a>

Result language
angličtina
Original language name
Ellsberg paradox: ambiguity and complexity aversions compared
Original language description
We present a simple model where preferences with complexity aversion, rather than ambiguity aversion, resolve the Ellsberg paradox. We test our theory using laboratory experiments where subjects choose among lotteries that “range from a simple risky lottery, through risky but more complex lotteries, to one similar to Ellsberg’s ambiguity urn. Our model ranks lotteries according to their complexity and makes different—at times contrasting—predictions than most models of ambiguity in response to manipulations of prizes. The results support that complexity aversion preferences play an important and separate role from beliefs with ambiguity aversion in explaining behavior under uncertainty.
Czech name
—
Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—

Project
<a href="/en/project/GA14-22044S" target="_blank" >GA14-22044S: Learning and Networks</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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