2017
DOI: 10.1007/s11166-017-9262-2
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Are the poor worse at dealing with ambiguity?

Abstract: This paper studies the relationship between people's ambiguity attitudes and income in the field using language as a natural source of ambiguity. It shows that the method of Baillon et al. (2017b) can be adapted for field studies, providing ambiguity measurement tasks that are more comprehensible for nonacademic subjects. Ambiguity attitudes were elicited in two groups of Chinese adolescents (poor rural and rich urban), among whom the income variation is big. In the rural group the poorer are both more ambigui… Show more

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Cited by 19 publications
(5 citation statements)
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“…The cognitive reflection test has the advantage of being relatively quick. It also has already been used as a control variable for ambiguity preferences in Li (2017). The five questions are based on Frederick (2005) and Li (2017).…”
Section: Methodsmentioning
confidence: 99%
See 1 more Smart Citation
“…The cognitive reflection test has the advantage of being relatively quick. It also has already been used as a control variable for ambiguity preferences in Li (2017). The five questions are based on Frederick (2005) and Li (2017).…”
Section: Methodsmentioning
confidence: 99%
“…The instructions of our experiment are based on Baillon et al (2018), Li (2017), and Anantanasuwong et al (2019), and an example of the instructions of the treatment grouploss can be viewed in Online Appendix A.…”
Section: Methodsmentioning
confidence: 99%
“…Notwithstanding the limitations, several studies on the relationship between ambiguity and the application for welfare benefits provide useful insights into how the poor perceive and behave. For example, studies report that the lower the level of income, the higher the risk aversion toward ambiguity (Li, 2017;Luttmer & Samwick, 2018;Spears, 2013).…”
Section: Comple Xit Y and Amb I G U It Y In Pub Li C A Ss Is Tan Cementioning
confidence: 99%
“…Another potential factor is socioeconomic status, which predicts cognitive ability during development [59]. Socioeconomic status has been linked to ambiguity attitude [60], and has been shown to affect processing of financial information [61]. Other demographic factors, such as age and life experience with uncertain situations, likely also play a role.…”
Section: Ambiguity Aversion Was Not Completely Abolishedmentioning
confidence: 99%