Ambiguity aversion and the degree of ambiguity

Abstract We empirically show that sample information not only moderates prospects’ outcome ambiguity but also decision makers’ revealed aversion of them. Since most natural prospects permit at least some inference, accounting for their degree improves prediction aversion. The special case full ambiguity, as in Ellsberg-type designs, is typically averted—yet many makers systematically like low degrees while disliking higher degrees. Ambiguity attitudes might thus usefully be characterized by sensitivity to such thresholds. Just people risks others, they have depend on how much there is. towards a are systematic, enabling across sources ambiguity.