Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 11/2018: Ambiguity Attitudes in the Loss Domain: Decisions for Self versus Others

Yilong Xu (), Xiaogeng Xu () and Steven Tucker ()
Additional contact information
Yilong Xu: University of Heidelberg, Postal: Grabengasse 1, 69117 Heidelberg, Germany
Xiaogeng Xu: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Steven Tucker: Waikato Management School, University of Waikato, Postal: Hillcrest Rd, Hillcrest, , Hamilton 3240, New Zealand

Abstract: We study whether people’s ambiguity attitudes differ when deciding for themselves or for others in the loss domain. We find no systematic differences in ambiguity attitudes between self- and other-regarding decision-making. Our results are consistent with the loss part of the fourfold pattern of ambiguity attitudes.

Keywords: Ambiguity attitudes; Decision-making for others; Losses and uncertainty

JEL-codes: C91; D81

13 pages, May 25, 2018

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