The Strength of Sensitivity to Ambiguity

Gijs van de Kuilen, Robin Cubitt, Sujoy Mukerji

Research output: Contribution to journalArticleScientificpeer-review

18 Citations (Scopus)


We report an experiment where each subject’s ambiguity sensitivity is measured by an ambiguity premium, a concept analogous to and comparable with a risk premium. In our design, some tasks feature known objective risks and others uncertainty about which subjects have imperfect, heterogeneous, information (“ambiguous tasks”). We show how the smooth ambiguity model can be used to calculate ambiguity premia. A distinctive feature of our approach is estimation of each subject’s subjective beliefs about the uncertainty in ambiguous tasks. We find considerable heterogeneity among subjects in beliefs and ambiguity premia; and that, on average, ambiguity sensitivity is about as strong as risk sensitivity.
Original languageEnglish
Pages (from-to)275-302
JournalTheory and Decision
Issue number3-4
Publication statusPublished - Oct 2018


  • ambiguity sensitivity
  • ambiguity attitude
  • measuring strength of ambiguity sensitivity
  • smooth ambiguity model
  • ambiguity premium


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