Causes of ambiguity aversion: Known versus unknown preferences
By Stefan T. Trautmann, Ferdinand M. Vieider, Peter P. Wakker. 2008
139 citations recorded by the source corpus.
Ambiguity aversion appears to have subtle psychological causes. Curley, Yates, and Abrams found that the fear of negative evaluation by others (FNE) increases ambiguity aversion. This paper introduces a design in which preferences can be private information of individuals, so that FNE can be avoided entirely. Thus, we can completely control for FNE and other social factors, and can determine exactly to what extent ambiguity aversion is driven by such social factors. In our experiment ambiguity aversion, while appearing as commonly found in the presence of FNE, disappears entirely if FNE is eliminated. Implications are discussed.
Subfields: Applied Psychology, Experimental and Cognitive Psychology, General Decision Sciences
View Paper: https://www.semanticscholar.org/paper/0f7cd93fef6554c0b5603c1eb710495d3430be98
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In Applied Psychology
In Experimental and Cognitive Psychology
In General Decision Sciences
Citations in the corpus
- Ambiguity and the value of information (2010, result): “Curley et al. (1986) and Trautmann et al. (2008) present evidence indicating that fear of negative evaluation by others can be an important explanation for ambiguity aversion, while the experiments reported by Roca et al. (2006) indicate that bias toward the status quo can be an important explanat”
- Neural investigation of default effects on decision-making under uncertainty (2026, unknown): “Moreover, individuals are often willing to spend significant amounts of money to avoid ambiguous processes in favor of normatively equivalent risky processes 6–8 .”