BID Eminent Scholars Lecture: Are people really ambiguity averse in the Ellsberg paradox?
|Speaker:||Ken Binmore, UCL|
|Date: ||Monday 4 July 2016|
|Time: ||11.00 - 12.30|
|Location: ||Bateman Lecture Theatre, Building One|
It is a "stylised fact" that experiments on the Ellsberg paradox show that people are ambiguity averse, but the experiments reported here find very little ambiguity aversion when the randomisation is very carefully controlled---a result that is independently replicated elsewhere. People are doubtless ambiguity averse in the uncontrolled world outside the laboratory, but studies that quote the Ellsberg paradox in support of this phenomenon are perhaps in need of revision.