It is to demonstrate the enormous potential of the experimental method in economics by providing examples of how experimental economics can shed important new light on key issues of vital economic significance. The subject matter covers several areas of economics and demonstrates why and how...

We define coherent-ambiguity aversion within the Klibanoff, Marinacci and Mukerji (2005) smooth ambiguity model (henceforth KMM) as the combination of choice-ambiguity aversion and value-ambiguity aversion. We analyze theoretically five ambiguous decision tasks, where a subject faces two-stage...