This paper investigates beliefs in an ambiguous environment. In contrast to many previous studies, the beliefs … regarding possible scenarios are measured independently from attitudes. We use laboratory experiments to estimate the entire … distribution of subjective beliefs and examine how beliefs are updated, incorporating new information. We find that beliefs and …

Decisions under ambiguity depend on the beliefs regarding possible scenarios and the attitude towards ambiguity. This … paper exclusively focuses on beliefs, and beliefs are measured independently from attitudes, in contrast to many previous … studies. We use laboratory experiments to estimate the subjective belief formation and belief updating process in an ambiguous …

experiments how much effect each factor can induce. We apply both non-parametric and parametric methods to cleanly separate the … degree of ambiguity is high. As information accumulates, ambiguity premiums decrease. We also find that beliefs do influence … prices under ambiguity. This is not because beliefs are biased towards either good or bad scenarios per se, but because …