Attitudes towards Ambiguity in a Large Representative Household Survey



Using real monetary incentives, we measure attitudes towards ambiguity in a large (N = 1000) representative sample of the Dutch population.  Consistent with earlier small sample studies (Abdellaoui, Baillon, Placido, and Wakker 2010, AER, forthcoming), we find a wide range of attitudes towards ambiguity. There is not only ambiguity aversion for likely events, but also pronounced insensitivity to the likelihood of ambiguous events, generating ambiguity seeking behavior for unlikely events.  We investigate the relation between ambiguity attitude and respondents’ economic choices, such as equity ownership and owning a private business. We find that equity ownership is not related to ambiguity aversion, but it is strongly negatively related to likelihood insensitivity. There is a negative relation between ambiguity aversion and ownership of a private business.
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Sebastian Gryglewicz