IDEAS home Printed from
   My bibliography  Save this paper

The Role of Probability Interval and Emotional Parameters


  • Robert M. Feinberg
  • Mahmud Yesuf


We study risk and ambiguity aversion among experimental subjects, focusing on understanding the role of the degree of ambiguity (as measured by the probability interval) and selected emotional parameters on attitudes towards ambiguity. In contrast to the general findings in the literature that people usually tend to take gambles with known probability over equivalent gambles with ambiguous probability, we find that student subjects are ambiguity neutral when faced with a relatively narrow probability interval but ambiguity averse in relatively wider intervals. We also find that less trusting and more pessimistic individuals tend to avoid ambiguity, while a measure of subject happiness has no impact on ambiguity aversion. JEL classification:

Suggested Citation

  • Robert M. Feinberg & Mahmud Yesuf, 2013. "The Role of Probability Interval and Emotional Parameters," Working Papers 2013-11, American University, Department of Economics.
  • Handle: RePEc:amu:wpaper:2013-11

    Download full text from publisher

    File URL:
    File Function: First version, 2013
    Download Restriction: no

    References listed on IDEAS

    1. Dalton, Timothy J. & Yesuf, Mahmud & Muhammad, Lutta, 2011. "Demand for Drought Tolerance in Africa: Selection of Drought Tolerant Maize Seed using Framed Field Experiments," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103712, Agricultural and Applied Economics Association.
    2. Craig R. Fox & Amos Tversky, 1995. "Ambiguity Aversion and Comparative Ignorance," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 585-603.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:amu:wpaper:2013-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Meal). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.