Engle-Warnick, Jim; Laszlo, Sonia - Centre Interuniversitaire de Recherche en Analyse des … - 2006
We experimentally test whether risk aversion or ambiguity aversion can explain decisions in a learning-by-doing game …. We first measure subjects' preferences toward risk and ambiguity, and then use these measures to predict behavior in the … game. We find that ambiguity averse subjects pay more often to resolve ambiguity, and we find that less risk averse …