Information Acquisition and Decisions under Risk and Ambiguity

Date: 2014-05
By: Ralf Bergheim
This paper experimentally investigates individual information acquisition and decisions in ambiguous situations in which the degree of ambiguity can endogenously and individually be decreased by the subjects. In particular, I analyze how risk aversion, ambiguity attitude and personality traits are related to an individual’s information acquisition prior to a decision and to the decision itself based on this information. I focus on urn decisions and conduct treatments that consider the loss and gain domain separately and that vary the amount of available information and the probabilistic structure.
Keywords: Ambiguity aversion; risk aversion; experiment; decision making; information acquisition; personality traits
JEL: C91 D03 D81