Decision Making with Imperfect Knowledge of the State Space

摘要: We conduct an experiment to study how imperfect knowledge of the state space affects subsequent choices under uncertainty with perfect space. Participants in our choose between a sure outcome and lottery 32 periods. All treatments are exactly identical periods 17 but differ 1 16. In early “Risk Treatment” there is information about lottery; “Ambiguity participants perfectly know not associated probabilities; “Unawareness have both outcomes probabilities. observe strong treatment effects on behaviour 32. particular, who been exposed environment very subsequently lotteries high (low) variance less (more) often compared other participants. Estimating individual risk attitudes from we find that distribution attitude parameters across can be ranked terms first order stochastic dominance. Our results show exposure different degrees long-lasting individuals’ risk-taking behaviour. JEL classification: D80, D81, C90