IDEAS home Printed from https://ideas.repec.org/a/aea/aejmic/v17y2025i1p354-88.html
   My bibliography  Save this article

Eliciting Ambiguity with Mixing Bets

Author

Listed:
  • Patrick Schmidt

Abstract

Preferences for mixing can reveal ambiguity perception and attitude on a single event. The validity of the approach is discussed for multiple preference classes, including maxmin, maxmax, variational, and smooth second-order preferences. An experimental implementation suggests that participants perceive almost as much ambiguity for the stock index and actions of other participants as they do for the Ellsberg urn, indicating the importance of ambiguity in real-world decision-making.

Suggested Citation

  • Patrick Schmidt, 2025. "Eliciting Ambiguity with Mixing Bets," American Economic Journal: Microeconomics, American Economic Association, vol. 17(1), pages 354-388, February.
    • Handle: RePEc:aea:aejmic:v:17:y:2025:i:1:p:354-88
    DOI: 10.1257/mic.20220370
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/mic.20220370
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20220370.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20220370.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/mic.20220370?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmic:v:17:y:2025:i:1:p:354-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.