An Experimental Study on the Effect of Ambiguity in a Coordination Game

An Experimental Study on the Effect of Ambiguity in a Coordination Game
Date: 2014
By: David Kelsey (Department of Economics, University of Exeter)
Sara le Roux (Department of Economics, Oxford Brookes University)
URL: http://d.repec.org/n?u=RePEc:exe:wpaper:1410&r=net
We report an experimental test of the influence of ambiguity on behaviour in a coordination game. We study the behaviour of subjects in the presence of ambiguity and attempt to determine whether they prefer to choose an ambiguity safe option. We fi?nd that this strategy, which is not played in either Nash equilibrium or iterated dominance equilibrium, is indeed chosen quite frequently. This provides evidence that ambiguity aversion infl?uences behaviour in games. While the behaviour of the Row Player is consistent with randomising between her strategies, the Column Player shows a marked preference for avoiding ambiguity and choosing his ambiguity-safe strategy.
Keywords: Ambiguity; Choquet expected utility; coordination game; Ellsberg urn, experimental economics.
JEL: C72 C91 D03 D81

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Myopic Loss Aversion under Ambiguity and Gender Effects

Date: 2013-07
By: Iñigo Iturbe-Ormaetxe Kortajarene (Universidad de Alicante)
Giovanni Ponti (Universidad de Alicante)
Josefa Tomás (Universidad de Alicante)
URL: http://d.repec.org/n?u=RePEc:ivi:wpasad:2013-05&r=net
Experimental evidence suggests that the frequency with which individuals get feedback information on their investments has an effect on risk-taking behavior. In particular, when they are given information sufficiently often, they take fewer risks compared with a situation in which they are informed less frequently. In this paper we find that this result still holds when subjects do not know the probabilities of the lotteries they are betting upon. We also detect significant gender effects, in that the frequency with which information is disclosed mostly affects men’s betting behavior, rather than women’s, and that men are much more risk-seeking after experiencing a loss.
Keywords: Myopic loss aversion, evaluation periods, ambiguity, gender effects
JEL: C91

New Zealand Economic Papers: Special Issue: Economic Psychology and Experimental Economics

New Zealand Economic Papers: Special Issue: Economic Psychology and Experimental Economics, 2011, Volume 45, Issue 1 & 2, 1-207.

Introduction

Psychology and economics: An introduction to the special issue
Simon Kemp; Gabrielle Wall
Pages 1 – 4
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Research articles

From anecdotes to novels: Reflective inputs for behavioural economics
Peter E. Earl
Pages 5 – 22
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Aspiration formation and satisficing in search with(out) competition
Werner Güth; Torsten Weiland
Pages 23 – 45
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Are conditional cooperators willing to forgo efficiency gains? Evidence from a public goods experiment
M. Vittoria Levati; Matteo Ploner; Stefan Traub
Pages 47 – 57
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Who makes the pie bigger? An experimental study on co-opetition
Juan A. Lacomba; Francisco Lagos; Tibor Neugebauer
Pages 59 – 68
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An experimental examination of the effect of potential revelation of identity on satisfying obligations
Lucy F. Ackert; Bryan K. Church; Shawn Davis
Pages 69 – 80
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Gender differences in trust and reciprocity in repeated gift exchange games
Ananish Chaudhuri; Erwann Sbai
Pages 81 – 95
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Do separation rules matter? An experimental study of commitment
Filip Vesely; Vivian Lei; Scott Drewianka
Pages 97 – 117
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Overcapitalization and cost escalation in housing renovation
Ti-Ching Peng
Pages 119 – 138
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Over-indebtedness and the interplay of factual and mental money management: An interview study
Bernadette Kamleitner; Bianca Hornung; Erich Kirchler
Pages 139 – 160
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Coherence and bidirectional reasoning in complex and risky decision-making tasks
C. Gustav Lundberg
Pages 161 – 181
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Outwit, outplay, outcast? Sex discrimination in voting behaviour in the reality television show Survivor
Gabrielle Wall
Pages 183 – 193
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Ambiguity, the certainty illusion, and the natural frequency approach to reasoning with inverse probabilities
John Fountain; Philip Gunby
Pages 195 – 207
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