A dynamic Ellsberg urn experiment

Many theories of updating under ambiguity assume either dynamic consistency or consequentialism to underpin behaviorally the link between conditional and unconditional preferences. To test the descriptive validity of these rationality concepts, we conduct a dynamic extension of Ellsbergʼs 3-color experiment. We find that more subjects act in line with consequentialism than with dynamic consistency and that this result is even stronger among ambiguity averse subjects.

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Year of publication:	2012
Authors:	Dominiak, Adam ; Dürsch, Peter ; Lefort, Jean-Philippe
Institutions:	Université Paris-Dauphine (Paris IX)
Subject:	dynamic consistency \| updating \| ambiguity \| Non expected utility preferences \| experiment \| consequentialism

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Extent:	application/pdf
Series:	Economics Papers from University Paris Dauphine.
Type of publication:	Book / Working Paper
Notes:	Published in Games and Economic Behavior, 2012, Vol. 75, no. 2. pp. 625-638.Length: 13 pages
Classification:	D82 - Asymmetric and Private Information ; D81 - Criteria for Decision-Making under Risk and Uncertainty ; C91 - Laboratory, Individual Behavior
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011073068