Learning about the Ellsberg Paradox reduces, but does not abolish, ambiguity aversion. [PDF]
PLoS ONE, 2020 Ambiguity aversion-the tendency to avoid options whose outcome probabilities are unknown-is a ubiquitous phenomenon. While in some cases ambiguity aversion is an adaptive strategy, in many situations it leads to suboptimal decisions, as illustrated by ...
Ruonan Jia +4 more
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Ambiguity aversion in a delay analogue of the Ellsberg Paradox [PDF]
Judgment and Decision Making, 2012 Decision makers are often ambiguity averse, preferring options with subjectively known probabilities to options with unknown probabilities. The Ellsberg paradox is the best-known example of this phenomenon.
Bethany J. Weber, Wah Pheow Tan
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Daniel Ellsberg and the Validation of Normative Propositions [PDF]
OEconomia, 2016 In the history of decision theory Daniel Ellsberg is known because his seminal paper “Risk, ambiguity and the Savage axioms” presented the counterexample to Bayesian decision-making that got the normative value of the theory into trouble.
Carlo Zappia
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A Unified Theory of Human Judgements and Decision-Making under Uncertainty [PDF]
Entropy, 2020 Growing empirical evidence reveals that traditional set-theoretic structures cannot in general be applied to cognitive phenomena. This has raised several problems, as illustrated, for example, by probability judgement errors and decision-making (DM ...
Raffaele Pisano, Sandro Sozzo
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The Ellsberg paradox: A challenge to quantum decision theory? [PDF]
Journal of Mathematical Psychology, 2017 zbMATH Open Web Interface contents unavailable due to conflicting licenses.
Ali Al-Nowaihi, Sanjit Dhami
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Identifying Quantum Structures in the Ellsberg Paradox [PDF]
International Journal of Theoretical Physics, 2014 Empirical evidence has confirmed that quantum effects occur frequently also outside the microscopic domain, while quantum structures satisfactorily model various situations in several areas of science, including biological, cognitive and social processes.
Diederik Aerts +2 more
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Testosterone and Cortisol Jointly Predict the Ambiguity Premium in an Ellsberg-Urns Experiment [PDF]
Frontiers in Behavioral Neuroscience, 2017 Previous literature has tried to establish whether and how steroid hormones are related to economic risk-taking. In this study, we investigate the relationship between testosterone (T) and cortisol (C) on one side and attitudes toward risk and ambiguity ...
Giuseppe Danese +3 more
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An interpretation of Ellsberg’s Paradox based on information and incompleteness [PDF]
Economic Theory Bulletin, 2013 This note relates ambiguity aversion and private information, by offering an interpretation of the Ellsberg’s paradox in terms of incompleteness of preferences. We adopt the standard model of information in terms of a \(\sigma \)-algebra \(\Sigma \) of events.
Luciano I De Castro +2 more
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The Ellsberg Paradox and Risk Aversion: An Anticipated Utility Approach [PDF]
International Economic Review, 1987 The paper describes a decision process under which it is rational to prefer a lottery with known probabilities to a similar ambiguous lottery where the decision maker does not know the exact values of the probabilities (the ``Ellsberg paradox''). This is done by modeling ambiguous lotteries as two-stage lotteries, by assuming the independence axiom ...
Uzi Segal
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Revisiting Ellsberg’s and Machina’s Paradoxes: A Two-Stage Evaluation Model Under Ambiguity [PDF]
Management Science, 2021 In this paper, a two-stage evaluation (TSE) model for decision making under ambiguity is proposed. Events in state space are classified into risky and ambiguous events, which correspond to different types of uncertainty generated by different sources.
Ying He
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