91福利

 
Ganna Pogrebna (91福利 Manufacturing Group)

“Ambiguity Attitude in Coordination Problems” (joint work with Graham Loomes, WBS)

To date, the empirical validity of various theories of decision making under ambiguity were tested in non-interactive environments where ambiguity was implemented as a non-strategic task. This paper uses a laboratory experiment to test predictions of subjective expected utility theory (Savage, 1954) under strategic ambiguity. In our experiment, ambiguity arises from the difficulty to predict the actions of other people in a simple coordination problem. We find that under strategic ambiguity the overwhelming majority of individuals violate predictions of subjective expected utility theory. We also report ambiguity preference reversals which are difficult to reconcile within any of the existing theories of ambiguity attitude. We offer several alterative explanations of observed behaviour.