Abstract:Ambiguity affects decisions of people who exhibit a distaste of and require a premium for dealing with it. Do ambiguity-neutral subjects completely disregard ambiguity and react to any vague news? Online vending platforms often attempt to affect buyer's decisions by messages like ''20 people are looking at this item right now'' or ''The average score based on 567 reviews is 7.9/10''. We augment the two-color Ellsberg experiment with similarly worded signals about the unknown probability of success. All decisio… Show more
“…Baillon et al (2018a) find that little effects of information on ambiguity aversion, but some effects of ambiguity perception. Vinogradov and Makhlouf (2021) find that ambiguity-neutral subjects react differently to (vague) news than ambiguity averse subjects. They conjecture that subjects consider if the new information requires the priors to be updated or not.…”
Section: Hypothesesmentioning
confidence: 69%
“…In Vinogradov and Makhlouf (2021)'s related study, participants decide between an ambiguous urn and a balanced risky urn. In a second stage, the same question has to be answered again but different type of vague news are introduced.…”
“…Baillon et al (2018a) find that little effects of information on ambiguity aversion, but some effects of ambiguity perception. Vinogradov and Makhlouf (2021) find that ambiguity-neutral subjects react differently to (vague) news than ambiguity averse subjects. They conjecture that subjects consider if the new information requires the priors to be updated or not.…”
Section: Hypothesesmentioning
confidence: 69%
“…In Vinogradov and Makhlouf (2021)'s related study, participants decide between an ambiguous urn and a balanced risky urn. In a second stage, the same question has to be answered again but different type of vague news are introduced.…”
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