Career concerns and ambiguity aversion

Why do people have ambiguity aversion, preferring, a gamble with a 50% chance of success to one whose expected probability of success is 50% but where that 50% is an unbiased estimate? The answer modelled here, in the spirit of the career concerns literature, is learning: a risk-averse person does not wish observers to learn whether he is good or bad at estimating probabilities. He therefore prefers a gamble with objective probabilities.

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Year of publication:	2010
Authors:	Rasmusen, Eric
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 108.2010, 2, p. 175-177
Publisher:	Elsevier
Subject:	Ambiguity Ellsberg paradox Career concerns

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008866915