Although ambiguity has received ample attention in the theoretical expected-utility literature, measures of ambiguity are rare. Here, I present a framework for eliciting and estimating risk and ambiguity simultaneously using a risk ladder. The model, based on a variant of the...

This article takes a fresh look at how public uncertainty influences willingness to pay (WTP) for climate-change mitigation programs. I elicit subjective distribution functions over future global mean temperatures and WTP for mitigation. I find, not surprisingly, that subjects, on average, view...