Sarin, Rakesh K.; Weber, Martin - In: Management Science 39 (1993) 5, pp. 602-615
Prior studies have shown that individuals are averse to ambiguity in probability. Many decisions are, however, made in … paper, we extend the previous research to evaluate the effect of ambiguity on individual decisions and the resulting market … price in market settings. We therefore examine an important issue: whether ambiguity effects persist in the face of market …