Non-Probability-Multiple-Prior Models of Decision Making Under Ambiguity: new experimental evidence. John Hey a and Noemi Pace b a University of York, UK b LUISS Guido Carli, Italy Thursday Workshop. DERS, York, 16 th December 2010. Aim of the Research (1).
John Heya and Noemi Paceb
aUniversity of York, UK
bLUISS Guido Carli, Italy
Thursday Workshop. DERS, York, 16thDecember 2010
is the subjective probability of state i (and p1+ p2+ p3=1).
is the index of the ambiguity aversion of the decision maker
=1 pessimistic evaluation: Maxmin Expected Utility Theory
=0 optimistic evaluation: Maxmax Expected Utility Theory
baseline subjective probabilities
finite integer between 0 and i-1
adjustment function that reflects attitudes toward ambiguity
1. The first type of question was to allocate a given quantity of tokens between two of the three colours in the Bingo Blower.
2. The second type of question was to allocate a given quantity of tokens between one of the three colours in the Bingo Blower and the other two.
Thank you Under Ambiguity: