Comparing behavior under risk and under ambiguity in a lifecycle experiment

Carbone, Enrica and Infante, Gerardo (2014) Comparing behavior under risk and under ambiguity in a lifecycle experiment. Theory and Decision, 77 (3). pp. 313-322. ISSN 0040-5833

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Abstract

Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such problems. Previous studies have focused on contexts in which agents are faced with risky future incomes and have to plan over long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter lifecycle. Results show that behavior in the ambiguity treatment is markedly different than in the risk condition and it is characterized by a significant pattern of under-consumption.

Item Type:	Article
Uncontrolled Keywords:	intertemporal consumer choice,lifecycle,risk,ambiguity,laboratory experiments
Faculty \ School:	Faculty of Social Sciences > School of Economics
Depositing User:	Pure Connector
Date Deposited:	28 Jan 2015 14:54
Last Modified:	21 Oct 2022 00:30
URI:	https://ueaeprints.uea.ac.uk/id/eprint/52005
DOI:	10.1007/s11238-014-9443-2

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