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Most models of ambiguity aversion satisfy Anscombe-Aumann's Monotonicity axiom. Monotonicity imposes separability of … preferences across events that occur with unknown probability. We construct a test of Monotonicity by modifying the Allais paradox …, modal behavior violates Monotonicity in a specific, intuitive way. Overall, our data suggest that violations of Monotonicity …
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In this paper we investigate how cognitive ability and character skills influence behavior, success and the evolution of play towards Nash equilibrium in repeated strategic interactions. We study behavior in a p-beauty contest experiment and find striking differences according to cognitive...
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