Career concerns and ambiguity aversion

C-Tier
Journal: Economics Letters
Year: 2010
Volume: 108
Issue: 2
Pages: 175-177

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Why do people have ambiguity aversion, preferring, a gamble with a 50% chance of success to one whose expected probability of success is 50% but where that 50% is an unbiased estimate? The answer modelled here, in the spirit of the career concerns literature, is learning: a risk-averse person does not wish observers to learn whether he is good or bad at estimating probabilities. He therefore prefers a gamble with objective probabilities.

Technical Details

RePEc Handle
repec:eee:ecolet:v:108:y:2010:i:2:p:175-177
Journal Field
General
Author Count
1
Added to Database
2026-01-29