Ambiguity attitudes for real-world sources: field evidence from a large sample of investors

Kanin Anantanasuwong, Roy Kouwenberg, Olivia S. Mitchell, Kim Peijnenburg

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Empirical studies of ambiguity aversion mostly use artificial events such as Ellsberg urns to control for unknown probability beliefs. The present study measures ambiguity attitudes using real-world events in a large sample of investors. We elicit ambiguity aversion and perceived ambiguity for a familiar company stock, a local stock index, a foreign stock index, and Bitcoin. Measurement reliability is higher than for artificial sources in previous studies. Ambiguity aversion is highly correlated for different assets, while perceived ambiguity varies more between assets. Further, we show that ambiguity attitudes are related to actual investment choices.
Original languageEnglish
Pages (from-to)548-581
Number of pages34
JournalExperimental Economics
Volume27
Issue number3
DOIs
Publication statusPublished - Jul 2024

Keywords

  • Ambiguity
  • Decision-making under uncertainty
  • Financial literacy
  • Investments
  • Preferences

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