Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108772
Authors: 
Gneezy, Uri
Imas, Alex
List, John A.
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5220
Abstract: 
We introduce a simple, easy to implement instrument for jointly eliciting risk and ambiguity attitudes. Using this instrument, we structurally estimate a two-parameter model of preferences. Our findings indicate that ambiguity aversion is significantly overstated when risk neutrality is assumed. This highlights the interplay between risk and ambiguity attitudes as well as the importance of joint estimation. In addition, over our stakes levels we find no difference in the estimated parameters when incentives are real or hypothetical, raising the possibility that a simple hypothetical question can provide insights into an individuals preferences over ambiguity in such economic environments.
Subjects: 
ambiguity aversion
experiments
estimation
JEL: 
D01
D03
D81
Document Type: 
Working Paper

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