Hedging, ambiguity, and the reversal of order axiom

• 成果类型: Article
• 署名作者: Oechssler, Joerg; Rau, Hannes; Roomets, Alex
• 署名单位: Ruprecht Karls University Heidelberg; Franklin & Marshall College
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2019.07.007
• 发表日期: 2019
• 页码: 380-387
• 关键词: Ellsberg paradox; hedging; Reversal of order axiom; experiment

摘要

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. (C) 2019 Elsevier Inc. All rights reserved.