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Ambiguity attitudes for real-world sources: field evidence from a large sample of investors

Author

Listed:
  • Kanin Anantanasuwong

    (Mahidol University)

  • Roy Kouwenberg

    (Mahidol University
    Erasmus University Rotterdam)

  • Olivia S. Mitchell

    (The Wharton School of the University of Pennsylvania
    NBER)

  • Kim Peijnenburg

    (EDHEC Business School
    CEPR)

Abstract

Empirical studies of ambiguity aversion mostly use artificial events such as Ellsberg urns to control for unknown probability beliefs. The present study measures ambiguity attitudes using real-world events in a large sample of investors. We elicit ambiguity aversion and perceived ambiguity for a familiar company stock, a local stock index, a foreign stock index, and Bitcoin. Measurement reliability is higher than for artificial sources in previous studies. Ambiguity aversion is highly correlated for different assets, while perceived ambiguity varies more between assets. Further, we show that ambiguity attitudes are related to actual investment choices.

Suggested Citation

  • Kanin Anantanasuwong & Roy Kouwenberg & Olivia S. Mitchell & Kim Peijnenburg, 2024. "Ambiguity attitudes for real-world sources: field evidence from a large sample of investors," Experimental Economics, Springer;Economic Science Association, vol. 27(3), pages 548-581, July.
    • Handle: RePEc:kap:expeco:v:27:y:2024:i:3:d:10.1007_s10683-024-09825-1
    DOI: 10.1007/s10683-024-09825-1
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    Cited by:

    1. Li, Jiangyan & Fairley, Kim & Fenneman, Achiel, 2024. "Does it matter how we produce ambiguity in experiments?," MPRA Paper 122336, University Library of Munich, Germany.

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    More about this item

    Keywords

    Ambiguity; Decision-making under uncertainty; Investments; Preferences; Financial literacy;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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