utility all predict unequivocally that risk-averse decision makers (DMs) will avoid the 50 - 50 urn that exhibits the highest … risk conceivable, while risk-seeking DMs do the opposite. However, we observe a substantial number of violations in the … notions of second- order risk. This finding is robust even when there is only partial ambiguity, and is applicable to all …

specification includes two parameters: one for ambiguity attitudes and another for risk attitudes. We also estimate a three …