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Ambiguity seeking as a result of the status quo bias

Author

Listed:
  • Mercè Roca
  • Robin Hogarth
  • A. Maule

Abstract

Several factors affect attitudes toward ambiguity. What happens, however, when people are asked to exchange an ambiguous alternative in their possession for an unambiguous one? We present three experiments in which individuals preferred to retain the former. This status quo bias emerged both within- and between-subjects, with and without incentives, with different outcome distributions, and with endowments determined by both the experimenter and the participants themselves. Findings emphasize the need to account for the frames of reference under which evaluations of probabilistic information take place as well as modifications that should be incorporated into descriptive models of decision making. Copyright Springer Science + Business Media, LLC 2006

Suggested Citation

  • Mercè Roca & Robin Hogarth & A. Maule, 2006. "Ambiguity seeking as a result of the status quo bias," Journal of Risk and Uncertainty, Springer, vol. 32(3), pages 175-194, May.
    • Handle: RePEc:kap:jrisku:v:32:y:2006:i:3:p:175-194
    DOI: 10.1007/s11166-006-9518-8
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    More about this item

    Keywords

    Ambiguity; Risk; Status quo bias; Decision making; Uncertainty;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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