Explaining the Ellsberg N-Colour Problem by Way of a Fanning Out Hypothesis

6 Pages Posted: 14 Jul 2015

See all articles by Keiran Sharpe

Keiran Sharpe

University of New South Wales

Date Written: July 14, 2015

Abstract

This paper shows that decision makers who maximize expected utility on a ring of hypercomplex numbers, and who have indifference curves that ‘fan out’ in a well-defined way, act as Ellsberg predicted they would in the context of his n-colour problem.

Keywords: Ellsberg n-colour problem, ambiguity aversion, commutative ring

JEL Classification: D80, D81

Suggested Citation

Sharpe, Keiran, Explaining the Ellsberg N-Colour Problem by Way of a Fanning Out Hypothesis (July 14, 2015). Available at SSRN: https://ssrn.com/abstract=2630445 or http://dx.doi.org/10.2139/ssrn.2630445

Keiran Sharpe (Contact Author)

University of New South Wales ( email )

Sydney, NSW 2052
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
37
Abstract Views
446
PlumX Metrics