Review of Economic Studies Vol. 86 No. 2 2019
Ambiguous Correlation
Abstract
Many decisions are made in environments where outcomes are determined by the realization of multiple random events. A decision maker may be uncertain how these events are related. We identify and experimentally substantiate behaviour that intuitively reflects a lack of confidence in their joint distribution. Our findings suggest a dimension of ambiguity which is different from that in the classical distinction between risk and “Knightian uncertainty”.
- DOI
- 10.1093/restud/rdy008
- Volume
- 86
- Issue
- 2
- Pages
- 668-693
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref