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No Two Experiments are Identical

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  • Epstein, Larry G.
  • Halevy, Yoram

Abstract

We study choice between bets on the colors of two balls, where one ball is drawn from each of two urns. Though you are told the same about each urn, you are told very little, so that you are not given any reason to be certain that the compositions are identical. We identify choices that reveal an aversion to ambiguity about the relation between urns, thus identifying a source of uncertainty different from the usual Knightian distinction between risk and ambiguity. Choice behavior is studied in a controlled high-stakes laboratory experiment, and the ability of new and existing models to rationalize the experimental findings is examined.

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Bibliographic Info

Paper provided by Vancouver School of Economics in its series Microeconomics.ca working papers with number yoram_halevy-2014-9.

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Length: 51 pages
Date of creation: 22 Feb 2014
Date of revision: 22 Feb 2014
Handle: RePEc:ubc:pmicro:yoram_halevy-2014-9

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Web page: http://www.economics.ubc.ca/

Related research

Keywords: ambiguity; uncertainty; correlation; Ellsberg;

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