Feltkamp, Vincent; Halevy, Yoram - Instituto Valenciano de Investigaciones Económicas (IVIE) - 1999
The Ellsberg paradox demonstrates that peoples belief over uncertainevents might not be representable by subjective probability. We relate this paradox to other commonly observed anomalies, suchas a rejection of the backward induction prediction in the one-shot Ultimatum Game. We argue that the...