experiments. In the first experiment, we elicit the value and probability weighting functions both under known and unknown … probability transformations rather than utility transformations. In the second experiment, we examine the effects of an increase …

The results of an experiment extending Ellsberg's setup demonstrate that attitudes towards ambiguity and compound … uncertainty are closely related. However, this association is much stronger when the second layer of uncertainty is subjective … probabilities, and (3) are ambiguity non-neutral. By decomposing ambiguity into risk and model uncertainty, and jointly eliciting …