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 language | English |
---|---|
Pages (from-to) | 548-581 |
Number of pages | 34 |
Journal | Experimental Economics |
Volume | 27 |
Issue number | 3 |
DOIs | |
Publication status | Published - Jul 2024 |
Keywords
- Ambiguity
- Decision-making under uncertainty
- Financial literacy
- Investments
- Preferences