Abdellaoui, Mohammed; Bleichrodt, Han; L'Haridon, Olivier; … - Centre de Recherche en Économie et Management (CREM) - 2013
This paper tests whether utility is the same for risk and for uncertainty. This test is critical for models that capture ambiguity aversion through a difference in event weighting between risk and uncertainty, like the multiple priors models and prospect theory. We present a new method to...