Ambiguity Attitudes in a Large Representative Sample: Measurement and an Application to the Non-Participation Puzzle

Sadder But Wiser: The Effects of Affective States and Weather on Ambiguity Attitudes

“…Our results also replicate those of Dimmock et al (2013), who found that age, incentives and education correlate with ambiguity attitudes, whereas gender, working status and financial situation are not significantly associated with ambiguity attitudes. In particular, highly educated respondents behave more in line with ambiguity neutrality in this sample (they have lower probability equivalents for the "1 color out of 10" task and higher probability equivalents for the "9 colors out of 10" task).…”

“…Specifically, Dow and Werlang (1992) and Bossaerts et al (2010) find that ambiguity aversion leads to decreased market participation, while Dimmock et al (2013) show that ambiguity-generated insensitivity has the same effect. According to these findings, more ambiguity-neutral attitudes should lead to greater market participation.…”

“…In January 2010, a randomly selected set of 2,491 individuals in LISS was invited to participate in a survey on ambiguity attitudes, out of which 1,933 individuals responded (see Dimmock et al 2013 for data details).…”

“…In total, 510 respondents won a reward, for a total of 7,650 EUR paid in real incentives (Dimmock et al 2013). …”

“…Furthermore, decisions under risk and ambiguity seem to engage partially separate neural systems (Huettel et al 2006). For example, the relevance of ambiguity attitudes has been demonstrated in macroeconomics (Hansen and Sargent 2007), finance (Bossaerts et al 2009, Dimmock et al 2013, Dow and Werlang 1992, and strategic management (Amit andSchoemaker 1993, Barney 1991).…”