Ambiguity preferences and likelihood insensitivity for asymmetric events - Université de Pau et des Pays de l'Adour
Pré-Publication, Document De Travail Année : 2024

Ambiguity preferences and likelihood insensitivity for asymmetric events

Résumé

We show that existing methods for measuring ambiguity attitudes for asymmetric events (i.e. unequally likely events) are prone to downward bias and misspecification. To address this, we propose a more robust approach and test it experimentally using both asymmetric and symmetric events (i.e. equally likely events) within the contexts of trust and coordination games. Our findings reveal that individuals i) prefer asymmetric events, showing lower ambiguity aversion compared to symmetric events, and ii) demonstrate greater likelihood insensitivity, as forming beliefs is more cognitively demanding for asymmetric events. These findings explain social ambiguity and strategic uncertainty in our experiment. We identify betrayal aversion as a disutility associated with trust decisions.
Fichier principal
Vignette du fichier
Kpegli_Erazo_Ambiguity.pdf (525.54 Ko) Télécharger le fichier
Origine Fichiers produits par l'(les) auteur(s)

Dates et versions

hal-04799374 , version 1 (22-11-2024)

Identifiants

  • HAL Id : hal-04799374 , version 1

Citer

Maria Alejandra Erazo, Yao Thibaut Kpegli. Ambiguity preferences and likelihood insensitivity for asymmetric events. 2024. ⟨hal-04799374⟩
0 Consultations
0 Téléchargements

Partager

More