Attitudes towards uncertainty and randomization: an experimental study
Individuals exhibit a randomization preference if they prefer random mixtures of two bets to each of the involved bets. Such preferences provide the foundation of various models of uncertainty aversion. However, it has to our knowledge not been empirically investigated whether uncertainty-averse dec...
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| Format: | Book/Monograph Working Paper |
| Language: | English |
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Heidelberg
Universitätsbibliothek der Universität Heidelberg
December 21, 2009
Heidelberg University of Heidelberg, Department of Economics December 21, 2009 |
| Series: | Discussion paper series / Universität Heidelberg, Department of Economics
no. 494 |
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Discussion paper series (no. 494)
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| Online Access: | Resolving-System, kostenfrei, Volltext: http://nbn-resolving.de/urn:nbn:de:bsz:16-opus-102037 Resolving-System, Volltext: http://hdl.handle.net/10419/127314 Verlag, Volltext: http://archiv.ub.uni-heidelberg.de/volltextserver/volltexte/2010/10203/pdf/Dominiak_Schnedler_2009_dp494.pdf 
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| Author Notes: | Adam Dominiak and Wendelin Schnedler |
| Summary: | Individuals exhibit a randomization preference if they prefer random mixtures of two bets to each of the involved bets. Such preferences provide the foundation of various models of uncertainty aversion. However, it has to our knowledge not been empirically investigated whether uncertainty-averse decision makers indeed exhibit such preferences. Here, we examine the relationship experimentally. We find that uncertainty aversion is not positively associated with randomization preferences. Moreover, we observe choices that are not consistent with the prevailing theories of uncertainty aversion: a non-negligible number of uncertain-averse subjects seem to dislike randomization. |
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| Item Description: | Online publiziert: 2010 |
| Physical Description: | Online Resource |
| Format: | Systemvoraussetzungen: Acrobat Reader. |