Partial Ambiguity

S-Tier
Journal: Econometrica
Year: 2017
Volume: 85
Pages: 1239-1260

Authors (3)

Soo Hong Chew (not in RePEc) Bin Miao (not in RePEc) Songfa Zhong (National University of Singapo...)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

We extend Ellsberg's two‐urn paradox and propose three symmetric forms of partial ambiguity by limiting the possible compositions in a deck of 100 red and black cards in three ways. Interval ambiguity involves a symmetric range of 50 − n to 50 + n red cards. Complementarily, disjoint ambiguity arises from two nonintersecting intervals of 0 to n and 100 − n to 100 red cards. Two‐point ambiguity involves n or 100 − n red cards. We investigate experimentally attitudes towards partial ambiguity and the corresponding compound lotteries in which the possible compositions are drawn with equal objective probabilities. This yields three key findings: distinct attitudes towards the three forms of partial ambiguity, significant association across attitudes towards partial ambiguity and compound risk, and source preference between two‐point ambiguity and two‐point compound risk. Our findings help discriminate among models of ambiguity in the literature.

Technical Details

RePEc Handle
repec:wly:emetrp:v:85:y:2017:i::p:1239-1260
Journal Field
General
Author Count
3
Added to Database
2026-01-29