To make predictions with theories, usually we assume an individual's characteristics such as uncertainty preferences to be stable over time. In this paper, we analyze the stability of ambiguity preferences experimentally. We repeatedly elicit ambiguity attitudes towards multiple 3-color Ellsberg urns over a period of two months. In our data, 57% of the choices are consistent with stable preferences over the time of observation. This share is significantly higher than random choices would suggest, but significantly lower than the level of consistency in a control treatment without a time lag (71%). Interestingly, for subjects who are able to recall their decision after two months correctly, the share of consistent choices does not drop significantly over time.
|Item Type:||Working paper|
|Series Name:||Discussion Paper Series / University of Heidelberg, Department of Economics|
|Date Deposited:||13 Aug 2013 08:28|
|Number of Pages:||30|
|Faculties / Institutes:||The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics|
|Uncontrolled Keywords:||ambiguity, stability of preferences, experiment|
|Schriftenreihe ID:||Discussion Paper Series / University of Heidelberg, Department of Economics|