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Journal of Consumer Research Vol. 15 No. 2 1988

Modeling Ambiguity in Decisions Under Uncertainty

Barbara E. Kahn1; Rakesh K. Sarin

1 U California Anderson Graduate School of Management, Los Angeles, US

Abstract

We present a model for predicting consumers' choices under conditions of uncertainty and ambiguity. We use the term ambiguity to distinguish the class of risky decisions for which the odds of an uncertain event are not precisely known. We show that our model predicts different decisions for individuals who are ambiguity averse, ambiguity seeking, or ambiguity indifferent, thus relaxing the constraint imposed on preferences by subjected expected utility theory.

DOI
10.1086/209163
Volume
15
Issue
2
Pages
265
Language
en
Sources
openalex crossref

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