Explaining Attitudes Towards Ambiguity: An Experimental Test of the Comparative Ignorance Hypothesis

21 Pages Posted: 27 Jul 2004

See all articles by Paul Dolan

Paul Dolan

Princeton University - Department of Economics; University of Sheffield - Department of Economics

Martin K. Jones

University of Dundee - Department of Economic Studies

Abstract

Many theories have been put forward to explain attitudes towards ambiguity. This paper reports on an experiment designed to test for the existence of Comparative Ignorance when it is tested over events with a range of different likelihoods. A total of 93 subjects valued a series of gambles, one of which was played out for real. The results do not lend support to the theory, although the relationship between risk and ambiguity does appear to correspond with other theories and previous empirical work.

Suggested Citation

Dolan, Paul and Jones, Martin K., Explaining Attitudes Towards Ambiguity: An Experimental Test of the Comparative Ignorance Hypothesis. Scottish Journal of Political Economy, Vol. 51, No. 3, pp. 281-301, August 2004. Available at SSRN: https://ssrn.com/abstract=568249

Paul Dolan (Contact Author)

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

Martin K. Jones

University of Dundee - Department of Economic Studies ( email )

Dundee, Scotland DD1 4HN
United Kingdom

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