Valuing a Risky Prospect Less than Its Worst Outcome: Uncertainty Effect or Task Ambiguity?
AbstractGneezy, List and Wu [Q. J. Econ. 121 (2006) 1283-1309] document that lotteries are often valued less than the lotteries’ worst outcomes. We show how to undo this result.
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Bibliographic InfoPaper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp334.
Date of creation: Jul 2007
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Risky choice; framing; experiments; task ambiguity; subject confusion.;
Other versions of this item:
- Andreas Ortmann & Alexandra Prokosheva & Ondrej Rydval & Ralph Hertwig, 2007. "Valuing A Risky Prospect Less Than Its Worst Outcome: Uncertainty Effect or Task Ambiguity?," Jena Economic Research Papers 2007-038, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-30 (All new papers)
- NEP-CBE-2007-09-30 (Cognitive & Behavioural Economics)
- NEP-EXP-2007-09-30 (Experimental Economics)
- NEP-UPT-2007-09-30 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ondrej Rydval & Andreas Ortmann, 2004.
"How financial incentives and cognitive abilities affect task performance in laboratory settings: An illustration,"
CERGE-EI Working Papers
wp221, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Rydval, Ondrej & Ortmann, Andreas, 2004. "How financial incentives and cognitive abilities affect task performance in laboratory settings: an illustration," Economics Letters, Elsevier, vol. 85(3), pages 315-320, December.
- Uri Gneezy & John A List & George Wu, 2006.
"The Uncertainty Effect: When a Risky Prospect Is Valued Less Than Its Worst Possible Outcome,"
The Quarterly Journal of Economics,
MIT Press, vol. 121(4), pages 1283-1309, November.
- Uri Gneezy & John List & George Wu, 2006. "The uncertainty effect: When a risky prospect is valued less than its worst possible outcome," Framed Field Experiments 00152, The Field Experiments Website.
- Daniel Ellsberg, 2000. "Risk, Ambiguity and the Savage Axioms," Levine's Working Paper Archive 7605, David K. Levine.
- Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
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