We run an experiment that gives subjects the opportunity to hedge away ambiguity in an Ellsberg-style experiment … setting. We find that we cannot reject that the reversal-of-order axiom holds. This suggests that hedging could still be … possible when carefully implementing RLIS. However, we also find low levels of ambiguity hedging across the board, suggesting …

A central tenet of organizational justice theory is that people prefer decisions to be made with higher than with lower …

To find out whether the model misspecification matters for hedging accuracy, we carefully select six increasingly …) Heston types, with or without jump-diffusion) with randomly given well-defined parameters. We access the hedging accuracy of … six models under the dynamic hedging framework of He et al. (2006) and Kennedy et al. (2009), and apply the Fourier …

. So can we trust the existing belief-elicitation results? And can we avoid potential hedging confounds? We propose an … experimental design that theoretically eliminates hedging opportunities. Using this design we test for the empirical relevance of … hedging effects in the lab. Our results suggest that hedging confounds are not a major problem if hedging opportunities are …