Blavatskyy, Pavlo R. - In: Economics Letters 118 (2013) 1, pp. 206-208
We consider two plausible and even natural examples of ambiguity aversion: the classical Ellsberg (1961) two-color paradox and a variant of the Machina (2009) reflection example. We extend the results of Baillon et al. (2011) and demonstrate that these two examples challenge the descriptive...