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
Creation-Date: October 1992
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