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Ambiguity seeking as a result of the status quo bias

Authors :
Roca, Mercè
Hogarth, Robin
Maule, A. John
Universitat Pompeu Fabra. Departament d'Economia i Empresa
Source :
Repositorio Digital de la UPF, Universitat Pompeu Fabra, Recercat. Dipósit de la Recerca de Catalunya, instname
Publication Year :
2005

Abstract

Several factors affect attitudes toward ambiguity. What happens, however, when people are asked to exchange an ambiguous alternative in their possession for an unambiguous one? We present three experiments in which individuals preferred to retain the former. This status quo bias emerged both within- and between-subjects, with and without incentives, with different outcome distributions, and with endowments determined by both the experimenter and the participants themselves. Findings emphasize the need to account for the frames of reference under which evaluations of probabilistic information take place as well as modifications that should be incorporated into descriptive models of decision making.

Details

Language :
English
Database :
OpenAIRE
Journal :
Repositorio Digital de la UPF, Universitat Pompeu Fabra, Recercat. Dipósit de la Recerca de Catalunya, instname
Accession number :
edsair.dedup.wf.001..2bd37079638b491955eeb228bb26c4d0