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Comparing decisions under compound risk and ambiguity: the importance of cognitive skills

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    SYSNO ASEP0468780
    Document TypeJ - Journal Article
    R&D Document TypeJournal Article
    Subsidiary JČlánek ve WOS
    TitleComparing decisions under compound risk and ambiguity: the importance of cognitive skills
    Author(s) Prokosheva, Sasha (NHU-C)
    Source TitleJournal of Behavioral and Experimental Economics - ISSN 2214-8043
    Roč. 64, October (2016), s. 94-105
    Number of pages12 s.
    Languageeng - English
    CountryUS - United States
    Keywordscognitive ability ; reduction of compound lotteries
    Subject RIVAH - Economics
    Institutional supportNHU-C - PRVOUK-P23
    UT WOS000384852300011
    EID SCOPUS84959228820
    DOI10.1016/j.socec.2016.01.007
    AnnotationI investigate the relationship between attitudes towards ambiguity and the ability to reduce compound risks. The evidence from an experiment on adolescents shows that patterns identified in the previous literature are susceptible to experimental implementation and the characteristics of the subjects. Cognitive skills and the way lotteries are presented affect reduction of compound risks differently to ambiguity neutrality. My results suggest that theoretical studies which model ambiguity preferences by relaxing the assumption of compound risk reduction should be viewed with caution, and I add to the evidence against the use of compound lotteries to represent ambiguous environments in experiments.
    WorkplaceEconomics Institute - CERGE
    ContactTomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122
    Year of Publishing2017