Monday, 4 February 2013

An Experiment on the Ellsberg Paradox

A Talk by Ken Binmore

Experimental results on the Ellsberg paradox typically reveal
behavior that is commonly interpreted as ambiguity aversion. The experiments reported find the objective probabilities for drawing a red ball that make subjects indifferent between various risky and uncertain Ellsberg bets. They allow us to examine the predictive power of alternative principles of choice under uncertainty, including the objective maximin and Hurwicz criteria, the sure-thing principle, and the principle of insufficient reason. Contrary to our expectations, the principle of insufficient reason performed substantially better than rival theories in our experiment, with ambiguity aversion appearing only as a secondary phenomenon.

Contact
Gebhard Glock
gebhard.glock [at] wzb.eu
Registration deadline
Please register until 25.01.2013.
Venue
WZB, Reichpietschufer 50, 10785 Berlin, Room A 310
Monday, 4 February 2013
Start 5:15 pm
Organizer
Professor Steffen Huck (WZB) and Professor Roland Strausz (Humboldt Universität zu Berlin)