2381/4212
Briony D. Pulford
Briony D.
Pulford
Andrew M. Colman
Andrew M.
Colman
Size Doesn't Really Matter: Ambiguity Aversion in Ellsberg Urns with Few Balls.
University of Leicester
2009
IR content
2009-02-10 16:39:28
Journal contribution
https://figshare.le.ac.uk/articles/journal_contribution/Size_Doesn_t_Really_Matter_Ambiguity_Aversion_in_Ellsberg_Urns_with_Few_Balls_/10081019
When attempting to draw a ball of a specified color either from an urn containing 50 red balls and 50 black balls or from an urn containing an unknown ratio of 100 red and black balls, a majority of decision makers prefer the known-risk urn, and this ambiguity aversion effect violates expected utility theory. In an experimental investigation of the effect of urn size on ambiguity aversion, 149 participants showed similar levels of aversion when choosing from urns containing 2, 10, or 100 balls. The occurrence of a substantial and significant ambiguity aversion effect even in the smallest urn suggests that influential theoretical interpretations of ambiguity aversion may need to be reconsidered.