Yang, ChunLei and Yao, Lan (2011): Ellsberg Paradox and Secondorder Preference Theories on Ambiguity: Some New Experimental Evidence.

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Abstract
We study the twocolor problem by Ellsberg (1961) with the modification that the decision maker draws twice with replacement and a different color wins in each draw. The 5050 risky urn turns out to have the highest risk conceivable among all prospects including the ambiguous one, while all feasible color distributions are meanpreserving spreads to one another. We show that the wellknown secondorder sophisticated theories like MEU, CEU, and REU as well as Savage’s firstorder theory of SEU share the same predictions in our design, for any firstorder risk attitude. Yet, we observe that substantial numbers of subjects violate the theory predictions even in this simple design.
Item Type:  MPRA Paper 

Original Title:  Ellsberg Paradox and Secondorder Preference Theories on Ambiguity: Some New Experimental Evidence 
English Title:  Ellsberg Paradox and Secondorder Preference Theories on Ambiguity: Some New Experimental Evidence 
Language:  English 
Keywords:  Ellsberg paradox, Ambiguity, Secondorder risk, Secondorder preference theory, Experiment 
Subjects:  D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D81  Criteria for DecisionMaking under Risk and Uncertainty C  Mathematical and Quantitative Methods > C9  Design of Experiments > C91  Laboratory, Individual Behavior 
Item ID:  28531 
Depositing User:  Lan YAO 
Date Deposited:  01 Feb 2011 19:32 
Last Modified:  27 Sep 2019 01:20 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/28531 