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Reacting to ambiguous messages: An experimental analysis

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  • Kellner, Christian
  • Thordal-Le Quement, Mark
  • Riener, Gerhard

Abstract

Ambiguous language is ubiquitous and often deliberate. Recent theoretical work (Beauchêne et al., 2019; Bose and Renou, 2014; Kellner and Le Quement, 2018) has shown how language ambiguation can improve outcomes by mitigating conflict of interest. Our experiment finds a significant effect of language ambiguation on subjects who are competent Bayesian updaters. For both ambiguity averse and neutral subjects within this population, one significant channel is behavioral in nature (anchoring). For ambiguity averse subjects, another channel of similar magnitude is hedging motivated by the desire to reduce ambiguity. This channel is absent in the case of ambiguity neutral subjects.

Suggested Citation

  • Kellner, Christian & Thordal-Le Quement, Mark & Riener, Gerhard, 2020. "Reacting to ambiguous messages: An experimental analysis," DICE Discussion Papers 357, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    • Handle: RePEc:zbw:dicedp:357
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    References listed on IDEAS

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    Cited by:

    1. Kops, Christopher & Pasichnichenko, Illia, 2023. "Testing negative value of information and ambiguity aversion," Journal of Economic Theory, Elsevier, vol. 213(C).
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    3. Wang, Zichang, 2024. "Informativeness orders over ambiguous experiments," Journal of Economic Theory, Elsevier, vol. 222(C).
    4. Shishkin, Denis & Ortoleva, Pietro, 2023. "Ambiguous information and dilation: An experiment," Journal of Economic Theory, Elsevier, vol. 208(C).
    5. Islam Md Tawhidul & Kenta Tanaka & Koji Kotani, 2025. "Sharing Information and Threshold Ambiguity in Public Bads Prevention," World, MDPI, vol. 6(1), pages 1-17, January.

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    More about this item

    Keywords

    Ambiguity aversion; Communication; Persuasion; Laboratory experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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