SFB 303 Discussion Paper No. A - 382

Author: Keppe, Hans-Jürgen, and Martin Weber
Title: Judged Knowledge and Ambiguity Aversion
Abstract: Competence has been recently proposed as an explanation for the degree of ambiguity aversion. Using general knowledge questions we presented subjects with simple lotteries in which they could bet on an event and against the same event. We show that the sum of certainty equivalents for both bets depends on the judged knowledge of the class of events. We also elicited the decision weights for events and complementary events. We found a similar effect of knowledge on the sum of decision weights.
Keywords: Ambiguity, Competence, Knowledge, Decision Making, Uncertainty
JEL-Classification-Number:
Creation-Date: October 1992
Unfortunately this paper is not available. Please order a hardcopy via e-mail.

SFB 303 Homepage

31.03.1998, Webmaster