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Hedging, ambiguity, and the reversal of order axiom.
- Source :
-
Games & Economic Behavior . Sep2019, Vol. 117, p380-387. 8p. - Publication Year :
- 2019
-
Abstract
- We ran experiments that gave subjects a straight-forward and simple opportunity to hedge away ambiguity in an Ellsberg-style experiment. Subjects had to make bets on the combined outcomes of a fair coin and a draw from an ambiguous urn. By modifying the timing of the draw, coin flip, and decision, we are able to test the reversal-of-order axiom. Our main result is that the reversal-of-order axiom seems to hold. We also confirm low levels of ambiguity hedging despite the relative obviousness of the opportunity. [ABSTRACT FROM AUTHOR]
- Subjects :
- *AXIOMS
*COINS
*ORDER
*AMBIGUITY
*URNS
Subjects
Details
- Language :
- English
- ISSN :
- 08998256
- Volume :
- 117
- Database :
- Academic Search Index
- Journal :
- Games & Economic Behavior
- Publication Type :
- Academic Journal
- Accession number :
- 138459629
- Full Text :
- https://doi.org/10.1016/j.geb.2019.07.007