@article{Berger:236239,
      recid = {236239},
      author = {Berger, Loic and Bosetti, Valentina},
      title = {Ellsberg Re-revisited: An Experiment Disentangling Model  Uncertainty and Risk Aversion},
      address = {2016-05-26},
      number = {839-2016-55884},
      series = {MITP},
      pages = {43},
      month = {May},
      year = {2016},
      abstract = {The  results of an experiment  extending Ellsberg's  setup   demonstrate  that attitudes towards
ambiguity and compound  uncertainty are closely related. However, this association  is much stronger when the second layer of uncertainty is  subjective than when it is objective. Provided that the  compound probabilities are simple enough, we find that most  subjects, consisting of both students and policy makers,  (1) reduce compound objective probabilities, (2) do not  reduce compound subjective probabilities, and (3) are  ambiguity non-neutral. By decomposing ambiguity into risk  and model uncertainty, and jointly eliciting the attitudes  individuals manifest towards these two types of  uncertainty, we characterize individuals' degree of  ambiguity aversion. Our data provides evidence of  decreasing absolute ambiguity aversion and constant  relative ambiguity aversion.},
      url = {http://ageconsearch.umn.edu/record/236239},
      doi = {https://doi.org/10.22004/ag.econ.236239},
}